Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the revenue forecast for their new iPhone app and

 

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%.

Step by Step Solution

3.46 Rating (166 Votes )

There are 3 Steps involved in it

Step: 1

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... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data Analysis And Decision Making

Authors: Christian Albright, Wayne Winston, Christopher Zappe

4th Edition

538476125, 978-0538476126

More Books

Students also viewed these Accounting questions