Question: Continuing the previous problem assume as in Problem 11 that
Continuing the previous problem, assume, as in Problem 11, that the damage amount is normally distributed with mean $3000 and standard deviation $750. Run @RISK with 5000 iterations to simulate the amount you pay for damage. Compare your results with those in the previous problem. Does it appear to matter whether you assume a triangular distribution or a normal distribution for damage amounts? Why isn’t this a totally fair comparison?
Answer to relevant QuestionsIn Problem 12 of the previous section, suppose that the demand for cars is normally distributed with mean 100 and standard deviation 15. Use @RISK to determine the “best” order quantity—in this case, the one with the ...Repeat the previous problem, but make the correlation between the two inputs equal to –0.7. Explain how the results change.A new edition of a very popular textbook will be published a year from now. The publisher currently has 2000 copies on hand and is deciding whether to do another printing before the new edition comes out. The publisher ...Simulation can be used to illustrate a number of results from statistics that are difficult to understand with non-simulation arguments. One is the famous central limit theorem, which says that if you sample enough values ...Rerun the new car simulation from Example 16.4, but now introduce uncertainty into the fixed development cost. Let it be triangularly distributed with parameters $600 million, $650 million, and $850 million. (You can check ...
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