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iogann1982 [59]
4 years ago
12

Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average

Mathematics
1 answer:
Sophie [7]4 years ago
6 0

Answer:

The answer is not complete. But you can use a spreadsheet to construct a simulation model to estimate the average profit per unit of a set of data.

Step-by-step explanation:

To calculate the Expected value of profit, we use:

Selling price - Expected value of different costs

Selling price is Total Cost * Probability

Confidence Interval

A Confidence Interval is a range of values that someone can be sure the true value lies in.

To calculate the confidence interval, we use the formula x ± z * S/√n

Where S is the standard deviation

n is the number of observations

x is the mean

z is the chosen z value

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