Question: Solve using excel and show all steps and formulas In November of this year, a car dealer is evaluating the monthly profitability. Below, the information

 Solve using excel and show all steps and formulas In November

Solve using excel and show all steps and formulas In November of this year, a car dealer is evaluating the monthly profitability. Below, the information the car dealer observed based on historical data is displayed: The ordering cost of cars follows a triangular distribution, with a minimum cost of $5,000, a maximum cost of $17,000, and most likely to be $11,000. The monthly demand for the dealer's cars is normally distributed with mean of 50 and standard deviation of 10 (use an excel function to round the sales quantity to the nearest integer). . Depending on the model and year, the dealer sets the selling price of each car following a uniform distribution between $8,000 and $30,000. Assume that there is no association between each car's ordering cost and selling price. In addition, the dealer expends $100,000 every month on the employees' salary. (1) Build a profit model for this car dealer that incorporates the uncertainties in selling price, ordering cost, and sales quantity. (Hint: Use the Uncertain Profit example as a template, BUT there are not exactly the same! You need to use the corresponding formulas to simulate each variable.) (2) Use Data Table function to generate 100 trials of profit. Copy these 100 random values, and in another blank cell in the same worksheet, paste in the values only. (3) Use these 100 "frozen" values to report the Descriptive Statistics (output option: Summary Statistics), and percentiles. Write a short summary on the dealer's prospective profit. Solve using excel and show all steps and formulas In November of this year, a car dealer is evaluating the monthly profitability. Below, the information the car dealer observed based on historical data is displayed: The ordering cost of cars follows a triangular distribution, with a minimum cost of $5,000, a maximum cost of $17,000, and most likely to be $11,000. The monthly demand for the dealer's cars is normally distributed with mean of 50 and standard deviation of 10 (use an excel function to round the sales quantity to the nearest integer). . Depending on the model and year, the dealer sets the selling price of each car following a uniform distribution between $8,000 and $30,000. Assume that there is no association between each car's ordering cost and selling price. In addition, the dealer expends $100,000 every month on the employees' salary. (1) Build a profit model for this car dealer that incorporates the uncertainties in selling price, ordering cost, and sales quantity. (Hint: Use the Uncertain Profit example as a template, BUT there are not exactly the same! You need to use the corresponding formulas to simulate each variable.) (2) Use Data Table function to generate 100 trials of profit. Copy these 100 random values, and in another blank cell in the same worksheet, paste in the values only. (3) Use these 100 "frozen" values to report the Descriptive Statistics (output option: Summary Statistics), and percentiles. Write a short summary on the dealer's prospective profit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!