complete the last table according to given data and show the details of calculation ....
50.1K
Verified Solution
Link Copied!
Question
Finance
complete the last table according to given data and show the details of calculation .
please type your answer by computer not by hand writing
Example 1: A company estimated the monthly cost and monthly income as in table(1) and table(2). Use Monte Carlo Simulation to advise the company to continue or leave the business. Cumulative Distribution Function If X is a purely discrete random variable, then it attains values x1, x2, ... with probability p = P(x), and the CDF of X will be discontinuous at the points x and constant in between: CDF = P(x) = { p(x) for 1 =1,2,3,...n Table (1) Probability Distribution of Cost CDF p(x) Monthly Cost (C) P(X) (10000) 0.10 0.10 21 0.25 0.15 22 0.75 0.50 23 0.90 0.15 24 1.0 0.10 25 From table(1) P(24)=P(21) + P(22) + P(23) + P(24) = 0.1 +0.15 +0.50 +0.15 = 0.90 Table (2) Probability Distribution of Income CDF P(x) Monthly Income (1) P(X) (10000) 0.08 0.08 22 0.20 0.12 23 0.40 0.20 24 0.70 0.30 25 0.87 0.17 26 0.95 0.08 27 1.0 0.05 28 Net Profit = Income - cost = 1-C 1 Table (3) CDF Random Number u o su
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
