SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the revenue forecast for their new iPhone app and provides the following assumptions: a. Development can occur in any of Months 2-10 with equally likely probability (revenue could begin in any of Months 3-11) b. The initial sales price will be determined by the month of development as follows: Month 2-4: $3.99 Month 5-7: $2.99 Month 8-10: $1.99 C. Initial monthly sales have a triangular distribution with minimum, most likely, and maximum values of 2,000, 5,000 and 7,000. d. Unit sales growth occurs until the end of Month 12 regardless of the development month. Thus, if development is completed in Month 6, there will be five months of unit sales growth (Months 8-12). If development does not occur until Month 10, there will only be one month of unit sales growth (Month 12). The monthly growth rate is normally distributed with a mean of 12% and a standard deviation of 4%. SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the revenue forecast for their new iPhone app and provides the following assumptions: a. Development can occur in any of Months 2-10 with equally likely probability (revenue could begin in any of Months 3-11) b. The initial sales price will be determined by the month of development as follows: Month 2-4: $3.99 Month 5-7: $2.99 Month 8-10: $1.99 C. Initial monthly sales have a triangular distribution with minimum, most likely, and maximum values of 2,000, 5,000 and 7,000. d. Unit sales growth occurs until the end of Month 12 regardless of the development month. Thus, if development is completed in Month 6, there will be five months of unit sales growth (Months 8-12). If development does not occur until Month 10, there will only be one month of unit sales growth (Month 12). The monthly growth rate is normally distributed with a mean of 12% and a standard deviation of 4%.
Expert Answer:
Answer rating: 100% (QA)
Simulation of New Product Launch for Mobile App This simulation will analyze the potential outcomes of launching a new mobile app based on the provide... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
Students also viewed these accounting questions
-
Problema 1: A copper ring has a diameter d =2.54000 cm at a temperature of 0.0 C. An aluminum sphere has a diameter D = 2.54508 cm at a temperature of 100.0 C. The sphere is placed on the ring and...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
-
Select the reasons why most professional telescopes are reflectors rather than refractors. A mirror can collect light more efficiently than a lens. Reflecting telescopes have shorter focal lengths...
-
Knossos Limited is a manufacturer of standard and custom-designed bottling equipment. Early in December 2015, Larissa Company asked Knossos to quote a price for a custom-designed bottling machine to...
-
Prepare a financial analysis. This takes a close look at two corporations, Bayer and Monsanto. Bayer is considering a bid for United States seed company Monsanto (Snider, 2016). For purposes of this...
-
Speed Boats Inc. has two divisions, Economy and Elite. The tax rate for the company is 40%. The following information pertains to the 2011 year: a. What is the ROI for each division? b. What is the...
-
Don James purchased a new automobile for $20,000. Don made a cash down payment of $5,000 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of...
-
Crops Inc. is about to issue ordinary bonds for financing new projects. The management has agreed to launch the bond at a contractual interest rate of 7%. The Market Interest rate is 8%. Accordingly...
-
According to the text, statistical tables and displays are used to
-
Describe a post that includes these components: Observation Go to or describe a public place you have been to and observe the people there for 25 minutes. What are the details of the location?...
-
Homophobia and Homonationalism: LGBTQ Law Reform in Canada Miriam Smith York University, Canada vs Max Weber, Talcott Parsons and the Sociology of Legal Reform: A...
-
A supplier informed the accounting department that they were paid $ 2 , 7 0 0 when the invoice was $ 3 , 0 0 0 . Upon investigation, it was confirmed that the correct amount of materials was received...
-
You are responsible for the preparation of the VAT returns of Pacman Traders. Pacman Traders uses the periodic inven- tory system. The following information for the month ended 30 April 20.3 is...
-
The total time taken to manufacture the first unit of Product A by Beta, Inc., was 8 0 hours. The learning rate applicable to Beta, Inc., was 9 0 % . Determine the time taken to manufacture the...
-
This week tackles culture shock, intercultural adaptation, microcultures, stereotyping, ethnocentrism, the role of media messaging, and diversity programs. Learning about these concepts enables you...
-
How do the principles of (a) Physical controls and (b) Documentation controls apply to cash disbursements?
-
The file S12_79.xlsx contains data on mass layoff events in all industries in the U.S. There are two versions of the data: non-seasonally adjusted and seasonally adjusted. Presumably, seasonal...
-
A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week 3, 1500 units. The unit production costs during each week are as follows: week 1, $130;...
-
Simulation can be used to illustrate a number of results from statistics that are difficult to understand with non-simulation arguments. One is the famous central limit theorem, which says that if...
-
Will a company that is making losses record positive economic profits or EVA?
-
What is the main drawback of accounting profitability indicators?
-
Can a company with a positive net profit show a negative economic profit?
Study smarter with the SolutionInn App