Question: Refer to the Madeira Manufacturing spreadsheet analysis in Problem 3. Model the variable cost as a uniform random variable with a minimum of $16 and

Refer to the Madeira Manufacturing spreadsheet analysis in Problem 3. Model the variable cost as a uniform random variable with a minimum of $16 and maximum of $24. Model product demand as 1,000 times the value of a gamma random variable with the shape parameter (alpha) of 4 and a scale parameter (beta) of 3

a. Perform a simulation analysis to compute the mean profit and the probability that the project will result in a loss.

b. What is your recommendation with regard to the introduction of the product?

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a The mean profit from this product launch is 329887 and the probability of a loss is only 003 b Bas... View full answer

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