practice_4_solution - Practice #4 Solutions Simulation...

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Practice #4 Solutions Simulation BUAD311 – Operations Management Fall 2010 1. Using Excel rand() function, generate 50, 100, and 500 outcomes from each of the following distributions. After generating random numbers, draw a histogram for each case. (One would expect that histograms smooth out as the number of trials increases.) a) Uniform between 50 and 100. b) Normal with mean 100 and standard deviation 10. See the spreadsheet.
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2. You own a company that produces electronic equipment. This equipment has one major component, component A. However, because this piece of equipment is critical to your customers, your company places a redundant component, component B, that can be used in case component A fails. Hence the lifetime of the equipment is the maximum of the lifetimes of components A and B. Your engineers tell you that the failure time of component A follows a normal distribution with mean 1 year and standard deviation 0.1 years, and that the failure time of component B follows a normal distribution with mean 1.3 years and standard deviation 0.6 years. Your customers have asked you for the average lifetime of the electronic equipment that your company produces. You do not know either the distribution of the maximum of two normal random variables or the mean. Hence you decide to perform a simulation to answer this question from your customers. First, you use the norminv function in excel to
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This note was uploaded on 10/05/2010 for the course BUAD 311 at USC.

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practice_4_solution - Practice #4 Solutions Simulation...

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