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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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows. Cost ($) Probability Cost ($) (a) Construct a simulation model to estimate the average prot (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average $ .p variance '1 What is a 95% condence interval (in $) around this average? (Round your answers to two decimal places.) $-x to$-x (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 prot per unit will be less than $5. (Use at least 1,000 trials. Round your answer to three decimal places.) C] What is a 95% condence interval around this proportion? (Round your answers to three decimal places.) [:t:l
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