If we have the probability corresponding to some events then we can use the Monte-Carlo simulation in
Question:
We have given,
Materials:• The probability is .18 that the cost will be $33.• The probability is .23 that the cost will be $35.• The probability is .32 that the cost will be $38.• The probability is .27 that the cost will be $39.
a) Now we can see the probabilities for the events are different. Now consider a random number (integer) in between 1 to 100. So the probability that any number will be selected within these numbers is 1/100 =0.01. Suppose X is the random number. So clearly X~ Uniform(0,100)
b) Determine the selling price per unit that should be established for this product using your simulation results and assuming that the company wants to realize an average markup of $20 on each unit sold.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Question Posted: