Calculate the annual percentage change from one year to the next for each year for: X1:...

  

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Calculate the annual percentage change from one year to the next for each year for: X1: Total Revenues X2: Total Cost of Revenues X3: Total Operating Expenses You should have 12 percentages for each variable. Treat X1, X2, X3 as random variables for 2021. Assume that each of these variables will increase from 2020 to 2021 by a random percentage that is picked from among the percentages calculated earlier with equal probability. Estimate the Income(Loss) from Operations for 2021. Run the simulation for 1000 times and provide a probability distribution for the Income(Loss) from operations for 2021. Excel Help: You need to generate random variables. Enter "=RAND()" in, say, cell A1, and Excel will return a random variable between 0 and 1. Each time you press enter on cell A1, this number will change. Entering "=IF(A1<.25,100,IF(A3<.5,200,IF(A3<.75,300,400)))" will return one of the following numbers with equal probability: 100 or 200 or 300 or 400. Calculate the annual percentage change from one year to the next for each year for: X1: Total Revenues X2: Total Cost of Revenues X3: Total Operating Expenses You should have 12 percentages for each variable. Treat X1, X2, X3 as random variables for 2021. Assume that each of these variables will increase from 2020 to 2021 by a random percentage that is picked from among the percentages calculated earlier with equal probability. Estimate the Income(Loss) from Operations for 2021. Run the simulation for 1000 times and provide a probability distribution for the Income(Loss) from operations for 2021. Excel Help: You need to generate random variables. Enter "=RAND()" in, say, cell A1, and Excel will return a random variable between 0 and 1. Each time you press enter on cell A1, this number will change. Entering "=IF(A1<.25,100,IF(A3<.5,200,IF(A3<.75,300,400)))" will return one of the following numbers with equal probability: 100 or 200 or 300 or 400.

Answer rating: 100% (QA)

Step 1 Generate Random Percentages for X1 X2 and X3 1 In Excel open a new worksheet 2 In cell A1 enter RAND 3 Drag the fill handle the small square at ... View the full answer