The manager of the apartment complex in Problem 9 of Chapter 9 believes that the number of
Question:
The manager of the apartment complex in Problem 9 of Chapter 9 believes that the number of units rented during any given month has a triangular distribution with minimum 30, most likely 34, and maximum 40. Operating costs follow a normal distribution with mean $15,000 and a standard deviation of $300. Use Crystal Ball to estimate the 80%, 90%, and 95% confidence intervals for the profitability of this business.
a. What is the probability that monthly profit will be positive?
b. What is the probability that monthly profit will exceed $4,000?
c. Compare the 80%, 90%, and 95% certainty ranges.
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Statistics Data Analysis And Decision Modeling
ISBN: 9780132744287
5th Edition
Authors: James R. Evans
Question Posted: