Complete the following table in preparation for a Monte Carlo simulation. The expected demand is 3.52
Demand Probability Cumulative Probability Interval of Random Numbers
0 .1
2 11-23
3 .5
4
86-00
Demand Probability Cumulative Probability Interval of Random Numbers
0 .1 .1 01-10
2 .13 .23 11-23
3 .27 .5 24-50
4 .35 .85 51-85
7 .15 1 86-00
Students should have only moderate difficulty filling in the table, save for the demand column. To do this they must set up the equation for the expected demand and solve for the missing component.
.132. + .273 . + .354. + .15(X) = 3.52 so X = 7
You might also like to view...
Mineral rights, unless there is an agreement otherwise:
A. are automatically transferred with the sale of real property B. are always kept by the original owner of the property C. cannot be conveyed separately from the surrounding real property D. cannot be leased
Premium fee revenues should be recognized as:
a. Revenue in the period the premium was received. b. Revenue in the period covered by the premium. c. As deferred revenue until the services are actually provided. d. As revenue only if services with standard charges equal to or greater than the premium for the period are provided in the period.