A company is considering launching a new product. The company believes that there is a 60% chance
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Question:
A company is considering launching a new product. The company believes that there is a 60% chance that the product will be successful. If the product is successful, it is expected to generate $1 million in revenue. If the product is unsuccessful, it will generate no revenue.
Use a Monte Carlo simulation to estimate the expected revenue from the new product.
Step-by-step instructions:
In Excel, create a new worksheet and enter the following data:
- Probability of success: 60%
- Revenue if successful: $1 million
- Revenue if unsuccessful: $0
How can i use the MonteCarlo method to solve this?
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