The Owner of Fix-A-Dent Auto Repair Wants to Study the Growth

question 5

Multiple Choice

The owner of Fix-a-dent Auto Repair wants to study the growth of his business using simulation. He is interested in simulating the number of damaged cars and the amount of damage to the cars each month. He currently repairs 100 cars per month and feels this can vary uniformly between a decrease of as much as 3% and an increase of up to 5% (average change of 1%) over the previous months. The dollar value of the damage to the cars is a normally distributed random variable with a mean of $3,000 and a standard deviation of $500. The average repair bill has been increasing steadily over the years and the owner expects the mean repair bill will increase by 1% per month. You have created the following spreadsheet to simulate the problem.

-Using the information in Exhibit 12.1, what Risk Solver Platform (RSP) function should go in cell B9 and copied to B10:B19 to compute the number of cars repaired in the subsequent months?

• A)=PsiUniform($B$8*(1+$F$2), $B$8*(1-$H$2))
• B)=PsiUniform(B8*(1-$F$2), B8*(1+$H$2))
• C)=PsiUniform($C$2*(1-$F$2), $C$2*(1+$H$2))
• D)=PsiIntUniform($C$2*(1-$F$2), $C$2*(1+$H$2))

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Definitions:

Consumption

The use of goods and services by households or individuals, representing the final use of produced goods and services in an economy.

Horizontal Equity

is a principle in taxation that mandates taxpayers with similar income or assets should be taxed at the same rate.

Tax Burdens

Tax burdens refer to the economic impact of taxes on individuals or corporations, often measured as a percentage of income or profits.

Ability to Pay

The principle suggesting that taxes should be levied according to an individual's or entity's capacity to pay, typically related to income or wealth levels.