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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

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 $ 4 5 ?per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:
Procurement Cost ( $ )
Probability
Labor Cost ( $ )
Probability
Transportation Cost ( $ )
Probability
1 0
0 . 2 5
2 0
0 . 1 0
3
0 . 7 5
1 1
0 . 4 5
2 2
0 . 2 5
5
0 . 2 5
1 2
0 . 3 0
2 4
0 . 3 5
2 5
0 . 3 0
( a ) ( 2 ?marks ) ?Calculate the expected value of the procurement, labor, and transportation cost, respectively.
( b ) ( 5 ?marks ) ?Use the following random numbers ( procurement , ?labor, and transportation cost, respectively ) ?to calculate a potential value for the unit profit: 0 . 0 0 5 , 0 . 2 6 , ?and 0 . 8 7 .

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