A B C D E F G H J K N O P Q 1 BK 2 30 points Data Answers Black Klawson (BK) is considering developing a new machine that Selling Price/unit $22,000 Sample Size will be marketed to tire manufacturers. First, BK wants to (b) Mean Profit analyze the profitability of this machine. 6 Fixed Cost (Uniform Distribution] Demand (Normal Distribution] The fixed cost is assumed to follow a uniform distribution 7 Lower bound ##### ##$ Mean 700 [c) Probability between $4 million and $6 million. 8 Upper bound ######## Standard Dev 300 The company thinks the demand (in units) for the machine is 9 [d) Probability of loss described by a normal distribution with mean of 700 and 10 standard deviation of 300. Variable cost (Discrete Distribution] (a] The unit selling price will be $22,000. 11 Probability Lower Limit Upper Limit Variable cost The variable cost has discrete distribution as shown. 12 0.25 $12.000 13 0.30 $13,000 [a) Fill in the random number interval blanks (lower and upper 14 0.35 $14,000 limits) in the Variable Cost table. 15 0.1 $15,000 (b) Simulate 150 profits in the given Simulation table and find the 16 mean profit. Use the random numbers given to you for 17 simulation. 18 Simulation Table Profit = [Selling price- unit variable cost]*demand-fixed cost (c) Find the probability that the profit will be at least $2 million. (d) Find the probability of loss. Random Fixed cost Random Random 19 Trial Number per unit Number Variable cost Number Demand Profit 20 0.295 0.695 0.658 0.419 0.363 0.248 0.826 0.941 0. 112 0.584 0.299 0.936 0.608 0.294 0.149 0.043 0.069 0.552 0.713 D. 171 0.073 0.738 0.687 0.599 0.977 0.044 0.442 10 0.118 0.552 0.897 146 0.332 0.504 0.580 66 147 0.024 0.083 0. 121 67 148 0.877 0.491 0.358 58 149 0.421 D. 193 0.199 150 0.395 0.656 0.031 70 71 Average 77