Question: Generate the corresponding model spreadsheet to perform Monte Carlo Analysis in Crystal Ball Model Construction: The principal components of the model will include: Materials Cost
Generate the corresponding model spreadsheet to perform Monte Carlo Analysis in Crystal Ball Model Construction: The principal components of the model will include: Materials Cost Subject to price fluctuations based on market trends. It can be modeled using a normal distribution with a mean and standard deviation derived from historical data. Labor Cost Variable based on availability and expertise of workers. It can be modeled using a triangular distribution, which captures the minimum, most likely, and maximum labor costs. Project Duration Can affect both material and labor costs. This can be modeled with a uniform distribution since it might unexpectedly vary within a fixed range. Spreadsheet Setup: Input Variables: Material Cost/Unit: Normal Distribution (mean: $50, std dev: $10) Labor Cost/Hour: Triangular Distribution (min: $30, mode: $50, max: $80) Project Duration: Uniform Distribution (min: 180 days, max: 240 days) Assumptions: Total Material Units Required: 1,000 units Total Labor Hours Required: 15,000 hours Formulas: Total Material Cost = Material Cost/Unit Total Material Units Total Labor Cost = Labor Cost/Hour Total Labor Hours Total Project Cost = Total Material Cost + Total Labor Cost
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