Calculate the average monthly revenue

Reference no: EM131929854

Question: Wang's Concrete Service notes that the number of jobs each month follows the following distribution: 10 with probability 0.15, 11 with probability 0.20, 12 with probability 0.20, 13 with probability 0.20, 14 with probability 0.15, and 15 with probability 0.10. The probability that a specific job will be for a residential driveway is 70%, and the probability that it will be for a commercial project is 30%. Revenues for residential driveways follow a normal distribution, with a mean of $500 and a standard deviation of $50. Commercial projects, although more lucrative, also have larger variability. Wang estimates that revenues here follow a normal distribution, with a mean of $1,500 and a standard deviation of $400. Set up a simulation model for Wang's problem and replicate it N times to calculate the average monthly revenue.

Reference no: EM131929854

Questions Cloud

Savings account with an annual interest rate : If you place $525 in a savings account with an annual interest rate of 1.65% compounded weekly

Develop a swot analysis of your organization : A brief introduction/background of the company is required. This will be instructive for the development of your SWOT Analysis.

Calculate sydney average monthly profit : Set up Sydney's problem and simulate total profit for 1 month (30 days). In your model use integers for all demands. Replicate your model N times and calculate.

Explain psychological pricing and give three examples : Explain psychological pricing and give three examples of how marketers use this concept practically.

Calculate the average monthly revenue : Wang's Concrete Service notes that the number of jobs each month follows the following distribution: 10 with probability 0.15, 11 with probability 0.20, 12.

What is your view on relationships in this context : Let's focus on cultural factors. What are some culture-specific aspects that might be of interest to marketers?

Calculate depreciation expense : Using the straight-line method, calculate depreciation expense for the first year after the revision.

Determine the probability that the chief will receive more : The fire chief plans to visit 30 houses tomorrow. Set up a simulation model and replicate it N times to determine the probability that the chief will receive.

What communication strategies do you feel would be effective : What communication strategies do you feel would be most effective in conveying your findings and recommendations to your stakeholders?

User Account

All Pages