Asked by Earl Jeane Salazar on May 11, 2024
Verified
Complete the following table in preparation for a Monte Carlo simulation.
If a random number of 77 is generated what is the demand?
Demand Probability Cumulative Probability Interval of Random Numbers 0.1211−253.3491−100\begin{array} { | c | c | c | c | } \hline \text { Demand } & \text { Probability } & \begin{array} { c } \text { Cumulative } \\\text { Probability }\end{array} & \begin{array} { c } \text { Interval of Random } \\\text { Numbers }\end{array} \\\hline 0 & & .1 & \\\hline 2 & & & 11 - 25 \\\hline 3 & & .3 & \\\hline 4 & & & \\\hline & & & 91 - 100 \\\hline\end{array} Demand 0234 Probability Cumulative Probability .1.3 Interval of Random Numbers 11−2591−100
Monte Carlo Simulation
An algorithm that utilizes multiple instances of random sampling to generate numerical outcomes, commonly applied in assessing risks and making decisions.
Cumulative Probability
The probability that a random variable is less than or equal to a specific value, representing the accumulation of individual probabilities.
Demand Probability
The likelihood or chance of a product or service being purchased at various levels of demand within a specific period.
- Develop an understanding of Monte Carlo simulation and use it effectively in business environments.
- Create numerical intervals derived from random number theories of probability distributions.
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Learning Objectives
- Develop an understanding of Monte Carlo simulation and use it effectively in business environments.
- Create numerical intervals derived from random number theories of probability distributions.
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