What is the probability that the project will result in loss

Assignment Help Operation Management

Reference no: EM131647291

The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $34,000. The variable cost for the product is uniformly distributed between $18 and $25 per unit. The product will sell for $54 per unit. Demand for the product is best described by a normal probability distribution with a mean of 1,200 units and a standard deviation of 200 units. Develop an Excel worksheet simulation for this problem. Use 500 simulation trials to answer the following questions:

What is the mean profit for the simulation? Round your answer to the nearest dollar.

Mean profit = $

What is the probability that the project will result in a loss? Recalculate the numerical value of probability in percent and then round your answer to the nearest whole number.

Probability of Loss = %

Reference no: EM131647291

Questions Cloud

Write a briefing report with recommendations for the agency : Write a 1- to 2-page briefing report with recommendations for the agency. Detail the particular risks faced by exposing the network to public access.

Discuss the lower risk of death from cancer : Physically fit people seem less likely to die of cancer. A report in the May 2002 issue of Medicine and Science in Sports and Exercise followed 25,892 men aged.

What would be an ethical concern for your business : What would be an ethical concern for your business?...and what would you do in that situation?

Lists the basic technology and concepts involved in network : You have been hired by a public library to consult on improving security, focusing on network security in the public facilities it manages.

What is the probability that the project will result in loss : What is the mean profit for the simulation? What is the probability that the project will result in a loss?

Activation of the inflammatory response results in heat : Activation of the inflammatory response results in heat, redness,pain,and swelling. Briefly explain why each of these signs occurres

Discuss use of computer software in introductory statistics : Does the use of computer software in Introductory Statistics classes lead to better understanding of the concepts?

Discuss employee empowerment-discuss leadership for quality : Discuss employee empowerment. Discuss leadership for quality. How to lead for a better quality change?

Estimate the amount of gambling : If he gets three, four, or all five correct, he's paid $10, $20, and $50, respectively. Estimate the amount such a bettor might expect to lose over many weeks.

User Account

All Pages