HW2 - _ BUSI 410 - Homework #2 Due 9/29/2009 Tips for a...

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_____________________________________________________________________________________________ BUSI 410 - Homework #2 Due 9/29/2009 Tips for a stress-free assignment: (1) In all your simulation experiments, please use 500 trials and initial seed value 410. (Click on the Run Preferences button, then select the Trial tab and the Sampling tab. In the latter check “Use same sequence . . .”) (2) In your submission please include: a) The spreadsheet model, where (i) formulas are shown in the cells that contain formulas (you can do that by pressing <Ctrl>+<~>), and (ii) gridlines and headings are shown (Page Layout->Print Gridlines, Page Layout->Print Headings). b) The frequency chart of the simulation output. c) The statistics of the simulation output. (These latter two can be obtained on a single sheet by requesting a Forecast Report and printing the second page, as you did for Lab Assignment 2.) 1. Tracy McCoy is shopping for a new car. She has identified a particular sports utility vehicle she likes but has heard that it has high maintenance costs. Tracy has decided to develop a simulation model to help her estimate maintenance costs for the life of the car. Tracy estimates that the projected life of the car with the first owner (i.e., before it is sold) is uniformly and continuously distributed with a minimum of 2.0 years and a maximum of 8.0 years. Furthermore, she believes that the number of miles driven per year do not depend on the actual year and can be modeled as a single random variable following a triangular distribution with a minimum value of 3,700 miles, a maximum value of 14,500 miles, and a most likely value of 9,000 miles. She also believes that the maintenance cost per mile driven for the vehicle does not depend on how old the car is and has determined from automobile association data that the maintenance cost per mile driven for the vehicle she is interested in is normally distributed, with a mean of $0.08 per mile and a standard deviation of $0.02 per mile. Using Crystal Ball:
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HW2 - _ BUSI 410 - Homework #2 Due 9/29/2009 Tips for a...

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