What is the simulated probability the revenue will exceed

Assignment Help Supply Chain Management

Reference no: EM133449068

Question A.

A large equipment supplier in the Midwest is trying to figure out information about revenues. They discover that for a price of $450,000, their weekly demand follows a binomial distribution and can be simulated in Excel with the formula:

"=BINOM.INV(20,0.3,RAND())"

Simulate the demand 1000 times in Excel and report the average demand for the 1000 simulations.

Question B.

Using the same demand simulations, calculate the revenue for each simulation by multiplying the simulated demand by the price.

What is the simulated average revenue?

Question C.

The company has an average total weekly expense of $2,000,000.

What is the simulated probability the revenue will exceed the average total weekly expense?

Reference no: EM133449068

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