A factory produces office chairs. According to the past data, the weekly demand has the following probability distribution. The selling price per chair is $120. In addition, the historical data showed that the unit cost of producing a chair showed a normal probability distribution with mean of $40 and the standard deviation of $5.
Demand           Prob.
2                         0.05
4                         0.27
6                         0.15
8                         0.18
10                       0.25
0.10 

a. Simulate this production of chairs for a year (52 weeks) to calculate the weekly net profit.
b. Calculate the average weekly profit and the percentage of generating $500 or more net profit based on 52 weeks
c. Replicate the 52-week average net profit 200 times. Determine the average weekly profit and the percentage of generating $500 or more net profit based on 200 replications.
d. Evaluate the average weekly profit and the percentage of generating $500 or more net profit if the selling price of a chair is $100 and $110 (scenario manager)

Answer rating: 100% (QA)

The selling price per chair 120 Max cost of producing a chair mean standard deviation 40 5 45 X PX X... View the full answer