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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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:

Procurement Cost ($) ProbabilityLabor Cost ($) ProbabilityTransportation Cost ($) Probability
100.25200.1030.75
110.45220.2550.25
120.30240.35
250.30
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(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 be less than $5. What is a 95% confidence interval around this proportion? Round your answers to one decimal of a percentage. Lower Bound: 6.77/ Upper Bound: 7.3

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