Evaluate profitability for variation in the estimates

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Reference no: EM131460732

For the garage-band model you developed in Problem 4, defined and run some reasonable scenarios using Scenario Manager to evaluate profitability for variation in the estimates. (for this problem, create an optimistic and pessimistic scenario by varying expected crowd, average concession expenditures, and fixed costs.) Use Risk Solver Platform to simulate the Outsourcing Decision Model under the assumptions that the production volume will be triangular with a minimum of 800, maximum of 1, 700, and most likely value of 1, 400; and that the unit supplier cost is normally distributed with a mean of $175 and a standard deviation of $12. Find the probability that outsourcing will result in the best decision.

Reference no: EM131460732

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