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The owner of Fix-a-dent Auto Repair wants to study the growth of his business using simulation. He is interested in simulating the number of damaged
The owner of Fix-a-dent Auto Repair wants to study the growth of his business using simulation. He is interested in simulating the number of damaged cars and the amount of damage to the cars each month. He currently repairs 100 cars per month and feels the change in number of cars can vary uniformly between a decrease of as much as 3% and an increase of up to 5% (average change of 1%). The dollar value of the damage to the cars is a normally distributed random variable with a mean of $3,000 and a standard deviation of $500. The average repair bill has been increasing steadily over the years and the owner expects the mean repair bill will increase by 1% per month. A spreadsheet model to simulate the problem has been run 300 times.A simulation of 300 trials is show in the dataframe below. Simulation Statistics Name ncome/ Revenue Description Output Cell D21 Minimum= 3339249.82 Maximum= 5086714.77 Mean= 4119518.91 Std Deviation= 291116.83 A B 2 Sample Size: 300 3 4 Sample Mean: 4, 119,519 5 Sample Standard Deviation: 291,117 6 Lower Limit of the 95% confidence interval 8 Upper Limit of the 95% confidence interval Using the information in the Exhibit above, what formula should go in cell B8 of the Confidence Intervals spreadsheet to compute the upper limit on a 95% confidence interval? O a. =B4+1.96*B5/SQRT(B2) O b. =B4+1.645*B5/SQRT(B2) O c. =B4-1.96*B5/SQRT(B2) O d. =B4+1.96*B5/B2
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