Question: Consider the supercomputer example from Exercise 5 . 2 0 . The firm is not sure about some of the relevant costs. The following probability
Consider the supercomputer example from Exercise The firm is not sure about some of the relevant costs. The following probability distributions reflect their beliefs about the uncertain costs: the annual operating and maintenance costs are uniformly distributed on the range $ $; the additional operating costs for simulation runs above per year are uniformly distributed on the range $ $per run per year Use the method of moments to estimate the mean and variance of the costs if the firm purchases the supercomputer and they perform runs per year. Use Monte Carlo sampling to estimate the distribution of costs if the firm purchases the supercomputer and they perform runs per year. Calculate the Mean, th percentile, and th percentile of the distribution. Hint: Use the Excel function RandBetweenBottomTop to simulate a uniform distribution
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