Construct simulation model-estimate the probability, Basic Statistics

Assignment Help:

CBT has agreed to finance the needs of a stereo wholesaler for the next month. To complete the loan agreement, the wholesaler must estimate the cash on hand during the first 90 days of operation. Daily receipts are normally distributed with a mean of $50,000 and a standard deviation of $12,000. Disbursements are also normally distributed with a mean of $48,000 and a standard deviation of $3,000.

(a)  Construct a computer simulation model to keep track of the cash flow during the first 90 days of operation. Assume that initially that there is $75,000 of cash on hand.

(b)  Repeat the simulation model constructed in part (a) 50 times using a data table. Use the results in the data table to estimate the probability that a short term loan will be needed.

(c)   Suppose that CBT has agreed to finance a short term loan if the probability a loan is needed is between 3% and 7%. How much initial cash on hand should the stereo wholesaler have?

 


Related Discussions:- Construct simulation model-estimate the probability

What is owner’s equity, What is owner’s equity? Owner’s value is on...

What is owner’s equity? Owner’s value is one of the three primary elements of a single proprietorship’s stability piece and bookkeeping situation. Owner’s value symbolizes

Genotypes are crossed ttyypp x ttyypp - Genetics Biology, Consider the gi...

Consider the given below. T _ tall is dominant to dwarf (tt). Y _ yellow seed is dominant to green seed (yy). P _ purple flower is dominant to white flower (pp). If plants wi

Armitage-dollmodel, Armitage-Dollmodel The model of carcinogenesis in ...

Armitage-Dollmodel The model of carcinogenesis in which the basic idea is that the essential variable determining the change in the risk is not age, but time period. The model

How audit works , A methodical selection of the adequate, qualified evident...

A methodical selection of the adequate, qualified evidential issue needed to verify the equity of management''s claims in the fiscal reports or to assess whether management has wis

Research design, Hi there, I am designing a research study for my undergrad...

Hi there, I am designing a research study for my undergrad in Online Relationship. I am having some trouble with my professor accepting my proposed research model and survey questi

What is Appropriation , What is Appropriation A legal endorsement for an ...

What is Appropriation A legal endorsement for an organization to make expenses for particular requirements from particular options available or approximated to be available durin

accounting, Fenn Museum, a nongovernmental not-for-profit organization, ha...

Fenn Museum, a nongovernmental not-for-profit organization, had the following balances in its statement of functional expenses: Education $300,000 Fundraising 250,000 Management an

INDEX NUMBER, FUNCTION SIMPLE AGGREGATIVE, SIMPLE RELATIVE

FUNCTION SIMPLE AGGREGATIVE, SIMPLE RELATIVE

homework problem which requires data collection using an in, each student ...

each student will be assigned a homework problem which requires data collection using an information system. Two scores are given: 1- adequacy of data collection and relevancy ( M2

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd