1. You have a friend that plays guitar in a local indie band. The friend tells you that his band has been asked to play in an Oktoberfest concert downtown. He's not good at math (or anything other than playing guitar), so he enlists your help in determining the best prices and fees to negotiate with the promoter.Early estimates show that 3,000 people will attend. Each attendee is expected to spend an average of $15 on concessions. The tickets sell for $10 each. The band will receive 80% from ticket sales and 70% from concession sales.There is a fixed cost of $10,000 that the band must pay upfront. Develop a general mathematical model in Excel to determine the expected profit. In addition, your friend will not do the concert unless the predicted profit is greater than $45,000 since he has other venues offering to host his band. make a decision labeled as "Show" or "No Show" to indicate the decision. Use good spreadsheet model techniques. Use spacing, colors, and cell borders to distinguish the various input and outputs. Test and validate your model.
2. Change the Attendance variable to be a randomly generated number from a normal inversedistribution with a mean of 3,000 and a standard deviation of 150. Then make a Data Table based on the model you developed in the previous question with 20 trials. Your table should show the three uncertain variables (Attendance, Profit, and Decision).Lastly, make an average of the Profit column and two cells that summarize the % of each decision Run several sets of trials and explain the outcomes in a few sentences.
3. As a new analyst at a Chicago-based manufacturing firm, you are asked to determine if their new product should be developed in-house or sent overseas for manufacturing. Use the Analytics Solver Platform to simulate the model in the Excel file named "Outsourcing Decision Model". Use the assumption that production volume will be triangularlydistributed with a minimum of 800, a maximum of 1,700, and a most likely value of 1,400. Assume the unit cost purchased from the supplier is normallydistributed with a mean of $175 and a standard deviation of $12. Find the probability that outsourcing will result in the best decision. Run the simulation for 2,000 trials and set the random seed to 0.Change the sampling method to Monte Carlo. For your answer:

• Explain the results of the chart
• Paste a copy of the chart into the Excel file
• 4. Remember that the model flips the decision at $0.So the output chart will need to be adjusted to reflect the cutoff. Using the Indie Band Modelyou developed in problem #1, run a Monte Carlo simulation with the following parameters:

Attendance: normally distributed with a mean of 3,000, a standard deviation of 400, and a minimum of 0 (obviously).

Average expenditure on concessions: normally distributed with a mean of $15, a standard deviation of $3, and a minimum of 0.

For your answers, identify the following: mean profit, minimum observed profit, maximum observed profit, and probability of achieving a positive profit. Then develop and identify the mean profit for the upper and lower 95% confidence interval. Use a 5,000 trial simulation.

Sample Indie Band Model

Below is an example of the Indie Band Model with the inputs described in the questions. The calculations have been blurred. You need to complete the rest of the model calculations in Excel.

A B C 1 Indie Band Model 2 4 Data 5 Attendance 3,000 6 Ticket Price $10 7 Percent of Ticket 80% 8 9 Concession Expenditures $15 10 Percent of Concessions 70% 11 Fixed Cost $10,000 12 13 Total of Tickets 14 Total of Concessions 15 16 Model 17 18 Expected Revenue S 19 20 Fixed Cost 21 22 23 Expected Profit S 24 Decision Show 25