Question: An analyst has built a simulation model to analyze the purchase and implementation of new solar-powered engines at a plant. The model considers several uncertainties

An analyst has built a simulation model to
An analyst has built a simulation model to
An analyst has built a simulation model to
An analyst has built a simulation model to analyze the purchase and implementation of new solar-powered engines at a plant. The model considers several uncertainties and estimates the payback period (in months) as well as the monthly savings (in thousand dollars). Output from the model is shown below. Payback Period Output Name Description Minimum Maximum Mean Std Deviation Variance Skewness Kurtosis Errors Mode 5% Perc 10% Perc 15% Perc 20% Perc 25% Perc 30% Perc Savings Output 31.185 57.549 110.081 203.141 56.294 116.891 11.292 22.476 127.501 505.185 0.778 3.833 0.299 2.868 0.000 0.000 52.604 113.504 40.566 82.067 43.147 89.015 44.988 93.234 46.579 97.266 48.032 100.656 49.412 103.784 112 106.945 MOGE 5% Perc 10% Perc 15% Perc 20% Perc 25% Perc 30% Perc 35% Perc 40% Perc 45% Perc 50% Perc 55% Perc 60% Perc 65% Perc 70% Perc 75% Perc 80% Perc 85% Perc 90% Perc 95% Perc 52.604 113.504 40.566 82.067 43.147 89.015 44.988 93.234 46.579 97.266 48.032 100.656 49.412 103.784 50.882 106.945 52.190 109.939 53.509 112.681 54.943 115.292 56.212 118.360 57.613 121.371 59.235 124.486 61.035 128.184 62.933 131.882 65.130 135.999 67.938 140.792 146.817 156.156 77.178 If the analyst wants to quote a 70% confidence interval for the payback period, what number should he use as the upper bound of the confidence interval? 55% Perc 60% Perc 65% Perc 70% Perc 75% Perc 80% Perc 85% Perc 90% Perc 95% Perc O 61.0 months If the analyst wants to quote a 70% confidence interval for the paybac bound of the confidence interval? 49.4 months O 67.9 months 45.0 months 39.4 months 56.212 118.360 57.613 121.371 59.235 124.486 61.035 128.184 62.933 131.882

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