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?
Answer to relevant QuestionsRerun the new car simulation from Example 16.4, but now use the RISKSIMTABLE function appropriately to simulate discount rates of 5%, 7.5%, 10%, 12.5%, and 15%. Comment on how the outputs change as the discount rate ...Modify the model from Example 16.6 so that you use only the years 1975 to 2007 of historical data. Run the simulation for the same three sets of investment weights. Comment on whether your results differ in any important way ...Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the company’s mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order ...Assume a very good NBA team has a 70% chance of winning in each game it plays. During an 82-game season what is the average length of the team’s longest winning streak? What is the probability that the team has a winning ...Consider a device that requires two batteries to function. If either of these batteries dies, the device will not work. Currently there are two new batteries in the device, and there are three extra new batteries. Each ...
Post your question