unkemer istributed beteren 1100,000 and 1141,000 (b) How muth dses strasiei need to bid to be ahwed of obtaining the preperty? 121,060$131,000131,000 Round your answers to the nearest dollar.) expectend proft for a bia of $121,000 expected profit for a bid of $131,000 expected profit for a bid of $141,000 What is the recommended bid? $121,000$131,000$141,000 Strassel investors buys real estate, develops it, and reselly it for a profit A nitw prowerty is avaiable, and Bud Strassel, the president ond ouner of strassel Investies, beleven if he purchases and compeitors will be fubmiting blds for the property, Strassel doss not know what bie competocer hill bid, but he assumes for planning purposes that the amount bid by each compettor mil be uniformiy oistributed between $100,000 and $141,000. (a) Whot is the estimate of the probobility Strassel will be able to obtain the property ising a bid of $121,600. (Use at least 5,000 trials, hound your ansiner three decimal placie] (b) How moch does strattel need to bis to be astured of obtaining the property? $121,000$131,000$141,000 (C) Use the simulation mode to compute the prefli tor each trial of the simulation run (noting that Strassel's proft is so if he does not whin the tid). Wath maximization of grofl an Strassers cojecthe, use simulation to evaluate Strassel's bid alternatives of $121,000, $131,000, or $141,000. What is the expected proft (in dotlars) for each bid atemative? (Use at least 5,000 tiak Round your answers to the nearert dollar.] expected profit for a bid of $121,000 expected profit for a bid of $131,000 oxpcted profit for a bid of $143,000 What is the recommendes bid? $121,000$191,000$141,000 (9) Cetermine the equation for computing fTCs brofe for given values of the reievant perameters (e.g, demand, producbon quantity, etc.). Using this equedion cempute PTCs proft (in dolars) when realused demand is equal to do.000 (the average demand). (b) Modeling oemand as a normal random varatle with a mean of 60,000 and a standard deviabion of 15, 000 , simulate the sales of the Dovgit doll using a preductoh cuantty of 60,060 initis. (c) Compare the average profit estinated by amdiation in part (b) to the profic calculacion in fart (a). The averge proft from the sumulabon is greater than the proft computed in part (a) The average prote from the sinulation is less than the profic computed in part (a). Explain why they ditec Frodit is amited by the production quanety, wo Aigher than tverage demand does not correpond to higher frofas, fut iower Gemand will lead bo lower profts. since the demand is being moseled at a norimal random variable, the sanple mean profit will alwars tens to be higher than the true mean proft. since the demand is being modeled as a normal random varlable, the umple mean profit will alwars tend to be loner than the true mean profic Prefit is limited by the srodjation quavaity, so lower then average demand does not corresond to lower profits, but higher demand wili lebe to higher profits (c) Before making a fnal decision en the producton quantity, management wants an analysis of a more aggresive 7opooo-unt production guantity and a more comaervative 50,000 -unit producbon quanthy. Run your simulation with these two production quantities. (Use at least 1,000 trals. Asund your andwers to the eearest integee) What is the mean groft (in doiars) associated with so, 000 units? What is the mean profit (in dollars) espocieted wath 70,000 unts? (c) Compare the average pront estimated by sinulation in part (b) lis the proft calculatisn in part (a). The sverage profi from the simulation is greater tran the proth compited in part (a) The everape proes from the timulation is iess then the prowt computed in partich). Explein why ther oiffer. Profit is limited by the production quantiti, so tigher than average demand soes not correspond to higher profta, but lower demans will leed to lower grofits Since the demand is being modeied as a normat random variable, the lample mean proft wil alaivs tend to be higher than be true meat brote. Since the demand is being modeled as a namal ransem variable, the ample mean groft will alabt kend to be lower than the true mean profit. What is the mesn prof (in doluri) sccorimed with 50,000 units? What is the mean profe (in dollars) associpted with 70,000 units? (e) In adoition to mean profit, what other factors should FIC consider in detemining a production ewantity? (Salect all that apply.) gut feeling steck merket prebabilty of a loss profis standard deviation probability of a stortege =: Model File Available: Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property, it can then be sold for $151,000. The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100,000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100,000 and $141,000. (a) What is the estimate of the probability Strassel will be able to obtain the property using a bid of $121,000 ? (Use at least 5,000 trials. Round your answer three decimal places.) (b) How much does Strassel need to bid to be assured of obtaining the property? $121,000$131,000$141,000 (c) Use the simulation model to compute the profit for each trial of the simulation run (noting that Strassel's profit is s0 if he does not win the bid). With maximization of profit as Strassel's objective, use simulation to evaluate Strassel's bid alternatives of $121,000,$131,000, or $141,000. What is the expected profit (in dollars) for each bid alternative? (Use at least 5,000 trials. Round your answers to the nearest dollar.) expected profit for a bid of $121,000$ expected profit for a bid of $131,000$ expected profit for a bid of $141,000$ What is the recommended bid? $121,000$131,000$141,000
