CH 12 Assignment - Revised March 2011 Chapter 12...

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Revised March 2011 Chapter 12 Assignments: Note : Some of the following problems are designed to give you practice in setting up a simulation model and demonstrating how random numbers can be used to generate values for the probabilistic inputs. The problems, which ask you to provide a small number of simulation trials, can be done with hand calculations. The others with larger samples must be done on Excel.  Problem 1 The following exercises are designed to practice on some useful features of Excel. a) Point at cell A1 and type =RAND() . Copy this expression into cells A2 to A10. Press the key F9 (renew page key) repeatedly and observe the changes in cells A1 to A10. b) Once part a) is done copy the content of cells A1 to A10. Point at cell B1 and paste special, the value of copied cells. Press the key F9 (renew page key) repeatedly and observe the changes in cells A1 to A10 but no change in cells B1 to B10. c) What do you conclude from the above experiment? What is the implication of what you just found?  Problem 2 The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $30,000. The variable cost for the product is expected to be between $16 and $24 with a most likely value of $20 per unit. The product will sell for $50 per unit. Demand for the product is expected to range from 300 to 2100 units, with 1200 units the most likely demand. Assume variables are uniformly distributed.
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This note was uploaded on 03/27/2011 for the course ECON 1106 taught by Professor Abc during the Spring '11 term at Algoma University.

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CH 12 Assignment - Revised March 2011 Chapter 12...

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