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A manufacturer of laptop computers wishes to simulate profit per week. On an Excel worksheet, perform...

A manufacturer of laptop computers wishes to simulate profit per week. On an Excel worksheet, perform the simulation using 1,000 trials.

The profit equation is: Z = VP – CF – VCV, where the symbols have the meanings given in the text.

The assumptions are:

Demand ( V ) is normally distributed with a mean of 1,250 computers and a standard deviation of 100 computers

Price ( P ) is uniformly distributed from $700 to $850 per computer

Fixed costs are ( CF ) are $200,000 per week

Variable costs per computer sold ( CV ) follow this discrete distribution:

Cost:. ... $350...$450....$575...

Probability: .10 .... .60 .... .30

Use Excel to obtain the following statistics for your 1,000 simulation runs of Profit: mean, standard deviation, the 95% confidence interval for the true population mean profit, coefficient of variation (CV), profit margin (profit as % of revenue), probability of a loss, and probability of making breakeven or better.

math   Statistics-And-Probability   
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