Q2: You own a farm. You know that (i) The annual revenue from the farm follows a normal distribution with an average of
Posted: Tue Jul 05, 2022 9:19 am
- Q2 You Own A Farm You Know That I The Annual Revenue From The Farm Follows A Normal Distribution With An Average Of 1 (113.75 KiB) Viewed 11 times
Q2: You own a farm. You know that (i) The annual revenue from the farm follows a normal distribution with an average of $250,000 and a standard deviation of $50,000. (ii) The fixed cost for the farm is $100,000. (iii) The variable cost follows a normal distribution with average of $100,000 and standard deviation of $20,000. Run 1,000 simulations for profit where profit = revenue - fixed cost - variable cost. Show the descriptive (under Data Analysis) statistics on these 1,000 simulated profits. Find the probability of loss. You MUST use the Data Table functionality of Excel for this problem.