# CH10_149 - average ﬁrst cost standard deviation of ﬁrst...

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: average ﬁrst cost __ standard deviation of ﬁrst minimum value of life maximum value of life annual beneﬁt c IRR for each simulation iteration 7w 14.01% =RATE(RiskUniform(A3,A4),A5,RiskNormal(Al,A2)) ., 1 .1 14.15% = average value of All (IRIS) from 1000 iterations 2.17% i = standard deviation of All (IRR) from 1000 iterations "1 L Distribution for [RR—(cell All) 7 17.5 19 20.5 - GURE 1041) Simulation spreadsheet for Example 10-15 and 1016. 'skNonnal function, however spreadsheets with @Risk functions display by default the results using average values. The RATE function contains two @Risk functions: RiskUniform and RiskNormal. The uni- orm distribution has the minimum and maximum values as parameters. The normal distribution the average and standard, deviation as parameters. ‘ The third IRR (cell A13) is theaverage for 1000 iterations. It will change each time the 7' ulatiou is done. The graph? ” glue 10-10 with 1000 iterations is much smoother than the graph from Example 10-15, w ’5 , “terations were done. ...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern