Calculate the probability that the present worth

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Reference no: EM131927050

"A company's present worth (PW) is given by the following equation: PW = -$180030 + 1.734X(Y-15) + 32900S, where X is the demand, Y is the unit price, and S is a factor that determines the salvage value. All three of these are random variables. Use simulation, like SIPMath, to simulate the present worth of BMC with 100,000 trials.

Set X as a normal distribution with mean 2250 and standard deviation 120. Set Y as a trianglular distribution with the minimum equal to 51, the most likely equal to 53, and the maximum equal to 59. Set S as a uniform distribution (between 0 and 1, there are no parameters).

After simulating 100,000 trials, calculate the probability that the present worth is less than 0. Express your answer as a decimal between 0 and 1."

Reference no: EM131927050

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