Question

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 that the mean of this distribution is $700 million, the same as the cost given in the example.) Comment on the differences between your output and those in the example. Would you say these differences are important for the company?



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  • CreatedApril 01, 2015
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