Scenario You have an innovative product that you have been selling for the past year. You have decided to apply for a patent to protect your IP, but you are also aware that businesses deem a patented product more worthy, which will lead to increased sales. Suppose a wholesaler offers to buy your entire production and inventory for the year for $8M (you won't be able to sell anything else). Run a Monte Carlo simulation to determine if you should take the offer. Use the following assumptions: - There is a 50% chance that your product gets patented. - Without a patent (base sales), you expect sales to follow a normal distribution, with a mean of $6 million and a standard deviation of $1.2 million. - If it does get patented, your sales go up by 20% to 80%, with 40% being the most likely case (i.e., triangular distribution) - You do not have to consider any costs or expenses. Part I - In-Class Discussion Write the formula to calculate sales if the patent is not awarded: Write the formula to calculate sales if the patent is awarded: Write one formula that works for both patent scenarios: Describe the overall flow for the simulation: Scenario You have an innovative product that you have been selling for the past year. You have decided to apply for a patent to protect your IP, but you are also aware that businesses deem a patented product more worthy, which will lead to increased sales. Suppose a wholesaler offers to buy your entire production and inventory for the year for $8M (you won't be able to sell anything else). Run a Monte Carlo simulation to determine if you should take the offer. Use the following assumptions: - There is a 50% chance that your product gets patented. - Without a patent (base sales), you expect sales to follow a normal distribution, with a mean of $6 million and a standard deviation of $1.2 million. - If it does get patented, your sales go up by 20% to 80%, with 40% being the most likely case (i.e., triangular distribution) - You do not have to consider any costs or expenses. Part I - In-Class Discussion Write the formula to calculate sales if the patent is not awarded: Write the formula to calculate sales if the patent is awarded: Write one formula that works for both patent scenarios: Describe the overall flow for the simulation