Reference no: EM1392483
This problem requires the use "Crystal Ball", the popular commercial spreadsheet add-in. For clarity, it is distributed by Decisioneering, Inc. This problem specifically requires that Excel and "Crystal Ball" (and OptQuest as applicable) be used - and not any other software choices. The link below directs you to a free 7-day trial: https://www.decisioneering.com/downloadform.html
Question:
Jim Jarrington owns a magazine stand at the Ovalstone business center in Roanoke, Virginia. He buys his magazines wholesale at $0.50 per magazine and sells them for $0.75. Jim has wondered about the optimal number of magazines to order each day. Based on history, he has found that demand (even though it is discrete) can be modeled by a normal distribution with a mean of 50 and standard deviation of 5. When he has more magazines than customers, he can recycle all the extra magazines the next day and receive $0.05 per magazine. On the other hand, if he has more customers than magazines, he loses some goodwill in addition to the lost profit on the potential sale of $0.25. Jim estimates the incremental lost goodwill costs five days' worth of business (that is, dissatisfied customers will go to a competitor the next week, but come back to the week after that).
Part A:
Develop a spreadsheet model to determine the optimal number of magazines to order each day. Use 500 replications and round the demand values generated by the normal random number generator (RNG) to the closest integer value.
Part B:
Construct a 95% confidence interval for the expected payoff from the optimal decision.
Note: Please provide an explanation, so the student is able to understand the logic and application of the logic within the context of this problem and the software used.
|
Standard deviation of normal distribution
: Suppose 94 percent of the items have lives exceeding 2000 h and 3.51 percent have lives exceeding 16,240 h. Find the mean and standard deviation of the service life.
|
|
Create schematic of three cell types
: Transcription factor X binds to a response element in gene A and gene B. In muscle cells, transcription factor X activates transcription of gene A. In neuronal cells,
|
|
Find what is the spring constant
: Coherent light with wavelength 609nm passes through two very narrow slits, and the interference pattern is observed on a screen a distance of 3- {rm m} from the slits. The first-order bright fringe is a distance of 4.84 {rm mm} from the center of ..
|
|
Null hypothesis to be tested-multinomial experiment
: Consider a multinomial experiment involving n = 300 and k = 5 cells. The observed frequencies resulting from the experiment are shown in the accompanying table, and the null hypothesis to be tested is as follows:
|
|
Simulation using crystal ball
: Develop a spreadsheet model to determine the optimal number of magazines to order each day. Use 500 replications and round the demand values generated by the normal random number generator (RNG) to the closest integer value.
|
|
Find the kinetic friction between the pig and the slide
: An 8.5- {rm kg} point mass and a 15- {rm kg} point mass are held in place 50- {rm cm} apart. A particle of mass m is released from a point between the two masses 19- {rm cm} from the 8.5-{rm kg} mass along the line connecting two fixed masses.
|
|
Body cells surrounded by each of isotonic hypertonic
: Estimate what would happen to body cells if surrounded by each of Isotonic, Hypertonic? Explain your reasoning?
|
|
Identify the issue and the values in tension
: The Case of the Marginalized Workers-You have decided to sub-contract out your grounds maintenance work. You have solicited bids for landscaping, a revamped irrigation system, and maintenance.
|
|
What angular speed should such a cylinder have
: It has been suggested that rotating cylinders about 12 mi long and 5.1 mi in diameter be placed in space and used as colonies. What angular speed should such a cylinder have so that the centripetal acceleration at its surface equals free-fall acce..
|