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

Demonstrate the potential risk from financing in eurodollars, You have the ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Ms 4, 2. From the following cost, production and sales data of Decors Motor...

2. From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) margi

Kurtosis, how solve and get kurtosis

how solve and get kurtosis

Probablity, a fair die is thrown 3 times. Let X1,X2,X3 denote the results o...

a fair die is thrown 3 times. Let X1,X2,X3 denote the results of 3 throws. What is the probablity that p[X1>X2+X3]

12 questions, normal distribution and the sampling distributions of sample ...

normal distribution and the sampling distributions of sample proportions and sample means, but without confidence interval

Psy 1110 Ohio University, do you give the answers with the way you figured ...

do you give the answers with the way you figured the problem out?..

Define Manufacturing Overhead Costs, In the financial statements, each prod...

In the financial statements, each product must include the costs of the given below: Direct labor Direct material Manufacturing or factory overhead The costs that would typically b

Cost accounting, I have 8 problems that I need help with. I will need to up...

I have 8 problems that I need help with. I will need to upload the files. Thanks

Explain Book value, Explain Book value The net quantity at which an advant...

Explain Book value The net quantity at which an advantage or asset group appears on the books of account, as distinguished from its marketplace or intrinsic value where book value

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