Use @RISK to analyze the sweatshirt situation in Problem 14 of the previous section. Do this for the discrete distributions given in the problem. Then do it for normal distributions. For the normal case, assume that the regular demand is normally distributed with mean 9800 and standard deviation 1300 and that the demand at the reduced price is normally distributed with mean 3800 and standard deviation 1400.
Answer to relevant QuestionsAlthough the normal distribution is a reasonable input distribution in many situations, it does have two potential drawbacks: (1) It allows negative values, even though they may be extremely improbable, and (2) It is a ...Suppose you are going to invest equal amounts in three stocks. The annual return from each stock is normally distributed with mean 0.01 (1%) and standard deviation 0.06. The annual return on your portfolio, the output ...W. L. Brown, a direct marketer of women’s clothing, must determine how many telephone operators to schedule during each part of the day. W. L. Brown estimates that the number of phone calls received each hour of a typical ...A technical note in the discussion of @RISK indicated that Latin Hypercube sampling is more efficient than Monte Carlo sampling. This problem allows you to see what this means. The file S15_44.xlsx gets you started. There is ...In the cash balance model from Example 16.5, the timing is such that some receipts are delayed by one or two months, and the payments for materials and labor must be made a month in advance. Change the model so that all ...
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