Construct the probability distributions for sales

Reference no: EM131806812

Question: A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 10,000 units per year with a probability of 10%. The most likely value is 7000 units annually. The pessimistic value is estimated to be 5000 units annually with a probability of 20%. Manufacturing and marketing together have estimated the most likely unit profit to be $32. The pessimistic value of $24 has a probability of 0.3, and the optimistic value of $38 has a probability of 0.2. Construct the probability distributions for sales and unit profits.

Reference no: EM131806812

Questions Cloud

Explain why effective administrative doctrine is essential : Explain why an effective administrative doctrine is essential for the successful public administration of a state.

What amount of equity income would starge have recognized : Of this total, 40% was not consumed until 2009. What amount of equity income would Starge have recognized in 2008 from its ownership interest in Ticker

Find the project probability distribution : The construction time for a bridge depends on the weather. The project is expected to take 250 days if the weather is dry and hot.

What is the minimum acceptable price : Variable manufacturing support 45. For Jeremy's Desks, what is the minimum acceptable price of this one-time-only special order

Construct the probability distributions for sales : A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 10,000 units per year with a probability.

Recognized the importance of knowledge management : Several business units and organizations have recognized the importance of Knowledge Management,

Prepare a recommendation for the coo : Analyze the situation and prepare a recommendation for the COO. State any assumptions you make about the nature of differences in the team.

Probability distribution of equivalent annual construction : A road between Fairbanks and Nome, Alaska, will have a most likely construction cost of $4 million per mile. Doubling this cost is considered.

Direction of association in hypothesis-education increases : What is the direction of association in the following hypothesis: education increases, ethnic as prejudice tends to decrease?

User Account

All Pages