• Case Study: Using a Monte Carlo Simulation for Stochastic Modeling Download Using a Monte Carlo Simulation for Stochastic Modeling
  • Use this data set to complete the case study: Monte Carlos Modeling Download Monte Carlos Modeling
  • Answer the following questions
    • Based on your model, what is the likelihood that TCM will be greater than $36,500. Submit a screenshot of your cumulative distribution function (CDF) chart to support your answer.
    • What value for TCM will you tell the production manager to use in his budget?
    • Repeat the above analysis using 5,000 rows of randomly generated variables. How do the analysis results change?
    • How do the results change if you use 12 bins for your histogram and CDF? What if you use 18 bins?
       

 
 

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Estimated Estimated Estimated Estimated Time Cost of Repair Cost of Estimated Life of Total Cost Between Labor (in of Time (in hours) Parts (per Asset (in Repairs (in hour fully Maintenanc Repair) years) days) burdened) 120 70 1120 8 8 180 75 1200 10 1473 90 1350 11 Estimated Estimated Estimated Estimated Time Cost of Repair Cost of Estimated Life of Total Cost Between Labor (in of Time (in hours) Parts (per Asset (in Repairs (in hour fully Maintenanc Repair) years) days) burdened) 120 70 1120 8 8 180 75 1200 10 1473 90 1350 11