Must be solved using arena simulation Provide your pseudo-code in the exhibit box. A firm...
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Accounting
Must be solved using arena simulation
Provide your pseudo-code in the exhibit box.
A firm produces YBox gaming stations for the consumer market. Their profit function is:Profit=(unit priceunit cost)(quantity sold)fixed costsProfit=(unit priceunit cost)(quantity sold)fixed costs
Suppose that the unit price is $200 per gaming station, and that the other variables have the following probability distributions:
Unit Cost
80
90
100
110
Probability
0.20
0.40
0.30
0.10
Quantity Sold
1000
2000
3000
Probability
0.10
0.60
0.30
Fixed Cost
50000
65000
80000
Probability
0.40
0.30
0.30
Use a simulation model to generate 1000 observations of the profit.
Estimate the mean profit from your sample and compute a 95% confidence interval for the mean profit. Estimate the probability that the profit will be positive.
Pseudo Code Exhibit Box
Show the results of running your model based on 1000 observations
Results Exhibit Box
Provide a snapshot of your completed Arena model
Model Exhibit Box
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