Question

The Grear Tire Company is budgeting for the coming year. Management has determined that the monthly demand for tires follows a normal distribution with a mean of 10,000 and a standard deviation of 7,500. Labor costs are uniformally distributed between $40 and $65 per tire. The cost of raw materials for each tire follows a discrete distributions with the costs of $30, $33, $37, $40, $42, and $46 having a probability of 0.08, 0.19, 0.27, 0.21, 0.16, and 0.09 respectively. Each month, Grear incurs a fixed operating cost of $50,000. Tires sell for $125 each. Construct a simulation indicating monthly profit for 12 months.

Which formula is most similar to the one used to estimate labor costs?

Select one:

a. NORM.DIST()

b. EXPON.DIST()

c. RAND() * (Upper - Lower) + Lower

d. VLOOKUP() e. NORM.INV()

Answer 1

Answer : c. RAND()*(Upper - Lower) + Lower

Explanation: