SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the...
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SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the revenue forecast for their new iPhone app and provides the following assumptions: a. Development can occur in any of Months 2-10 with equally likely probability (revenue could begin in any of Months 3-11) b. The initial sales price will be determined by the month of development as follows: Month 2-4: $3.99 Month 5-7: $2.99 Month 8-10: $1.99 C. Initial monthly sales have a triangular distribution with minimum, most likely, and maximum values of 2,000, 5,000 and 7,000. d. Unit sales growth occurs until the end of Month 12 regardless of the development month. Thus, if development is completed in Month 6, there will be five months of unit sales growth (Months 8-12). If development does not occur until Month 10, there will only be one month of unit sales growth (Month 12). The monthly growth rate is normally distributed with a mean of 12% and a standard deviation of 4%. SIM Take Five from Question 10 wants to use simulation to assess the uncertainty around the revenue forecast for their new iPhone app and provides the following assumptions: a. Development can occur in any of Months 2-10 with equally likely probability (revenue could begin in any of Months 3-11) b. The initial sales price will be determined by the month of development as follows: Month 2-4: $3.99 Month 5-7: $2.99 Month 8-10: $1.99 C. Initial monthly sales have a triangular distribution with minimum, most likely, and maximum values of 2,000, 5,000 and 7,000. d. Unit sales growth occurs until the end of Month 12 regardless of the development month. Thus, if development is completed in Month 6, there will be five months of unit sales growth (Months 8-12). If development does not occur until Month 10, there will only be one month of unit sales growth (Month 12). The monthly growth rate is normally distributed with a mean of 12% and a standard deviation of 4%.
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Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
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