This is the Sanotronics simulation with $100$ trials that was covered in the lecture. Here, we want to illustrate how the results can change when different distributions are used for some of the random variables.

Suppose the following changes occur in the assumptions.

$-$ Parts cost follows a normal distribution with mean of $$90$ and standard deviation of $$10.$

$-$ Demand now follows a uniform distribution between $7,500$ and $30,000$ units.

Make the appropriate changes in the Excel sheet. Do not change the given random numbers.

Now, what are the

a$)$ mean profit $($rounded to whole $$)$

b$)$ the probability of loss $($in $\%)$ and

c$)$ value at risk $($rounded to whole $$)?$ Remember to give the absolute value.

d$)$ Is this more or less risky than the original example?Sanotronics Simulation with $100$ Trials

Data

Selling Price per Unit

Adm$/$Adv Cost

This is the Sanotronics simulation with $100$ trials that was covered in the lecture. Here, we want

to illustrate how the results can change when different distributions are used for some of the

random variables.

Suppose the following changes occur in the assumptions.

Parts cost follows a normal distribution with mean of $$90$ and standard deviation of $$10.$

Demand now follows a uniform distribution between $7,500$ and $30,000$ units.

Make the appropriate changes in the Excel sheet. Do not change the given random numbers.

Now, what are the

a$)$ mean profit $($rounded to whole $$)$

b$)$ the probability of loss $($in $\%)$ and

c$)$ value at risk $($rounded to whole $$)?$ Remember to give the absolute value.

d$)$ Is this more or less risky than the original example?