You, as a soon-to-graduate business student, are considering starting your own marketing consulting business. In assessing the market, you have categorized potential projects into five groups, with expected frequencies and time durations shown below:

Project Type, Frequency and TimeProject TypeFrequencyTime DurationMinor30%0.5 to 3.0 hoursSmall35%3 - 10 hoursMedium20%10 - 25 hoursLarge10%25 - 35 hoursMajor5%35 - 50 hours

You estimate that the total number of projects per week, based on surveying similar firms in comparable cities, has the following distribution:

Probability of Number of Projects with Different Consulting FeesNumber of Projects per WeekProbability with $50/Hour Consulting Fee$60/Hour$70/Hour04%8%13%17%8%13%210%11%17%315%16%24%421%20%15%515%16%8%610%8%4%77%6%3%85%4%2%96%3%1%

Monthly expenses are estimated to be $2300, and you would like to have an annual income that compares with your graduating classmates; that is, at least $75,000. Determine the potential profitability of your business if the hourly consulting rates charged are $50, $60, or $70.

Your group studies the profitability problem, and build a simulation model to solve this profitability problem using Excel. The results of the profitability analysis include: estimated net profit (loss), possible minimum profit and maximum profit, and probability of making profit from this business. (Hint: For a particular year, if you make less than $75,000, your business is making loss.)