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950 points

Problems, Chapters 66, 69, 70, 73, 74, 80


Do all of these problems in a single Excel Workbook.
Solve each problem on a separate Worksheet.
Your Excel File must be setup like you did in Formative01 with appropriate Worksheet tab names.


(200) When done, upload your file, named Summative06.xlsx, to the D2L Assignment Folder 'Summative06'.

Random Variables-Chapter 66, Problem 2

Compute the mean, variance and standard deviation of the number of dots showing when a die is tossed.
1. (50) Mean


2. (50) Variance:


3. (50) Standard Deviation:

Normal random variables- Chapter 69, Problem 2

Annual demand for a certain drug is normally distributed with a mean of 40,000 units and a standard deviation of 10,000 units.

(50) 4. What is the probability that annual demand is between 35,000 and 49,000 units?

(50) 5. If we want to have only a 5% chance of running out of the drug, to what level should we set the annual production?

Weibull Analysis-Chapter 70, Problem 1

In the Problem 1 worksheet, you are given data about the duration of a machine's lifetime.

(50) 6. What is the probability that the machine will last at least 10 hours?

(50) 7. What is the probability that the machine will last between 1 and 5 hours?

(50) 8. What is the probability that the machine will fail within 6 hours?

 

Monte Carlo Simulation-Chapter 73, Problem 1

A GMC dealer believes that demand for 2015 Envoys will be normally distributed with a mean of 200 and standard deviation of 30.
The cost of receiving an Envoy is $25,000, and an Envoy sells for $40,000.
Half of all leftover Envoys can be sold for $30,000.
She is considering ordering 200, 220, 240, 260, 280, or 300 Envoys.

(100) 9. How many should she order?

Optimal Bids-Chapter 74, Problem 2

Suppose we are bidding for an oil well that we believe will yield $40 million (including the cost of developing and mining the oil) in profits.
Three competitors are bidding against us, and each competitor's bid is assumed to follow a normal random variable with a mean of $30 million and a standard deviation of $4 million.

(50) 10. What should we bid (within $1 million)?

Economic Order Quantity-Chapter 80, Problem 1

An appliance store sells plasma TVs.
Annual demand is estimated at 1,000 units.
The cost to carry a TV in inventory for one year is $500.00, and the cost to place an order for plasma TVs is $400.00.

(50) 11. How many HDTVs should be ordered each time an order is placed?

(50) 12. How many orders per year should be placed?

(50) 13. What are the annual ordering costs?

(50) 14. What are the annual ordering costs?