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- suunny wilcuci to launci u prout! 4. The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for
- suunny wilcuci to launci u prout! 4. The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be 142 per unit. Probability distributions for the purchase cost, the labor cost, and the transporta- tion cost are estimated as follows: Labor Cost ($) Transportation Cost ($) Procurement Cost ($) 10 11 12 20 Probability 0.25 0.45 0.30 Probability 0.10 0.25 0.35 0.30 Probability 0.75 0.25 22 24 25 a. Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average? b. Management believes that the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability that the profit per unit will he less than $5. What is a 95% confidence interval around this proportion? 1. thet a
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