A Company Is About to Develop and Then Market a New

question 62

Essay

A company is about to develop and then market a new product. It wants to build a simulation model for the entire process, and one key uncertain input is the development cost. For each of the scenarios in the questions below, choose an "appropriate" distribution, together with its parameters, and explain your choice.
-(A) Company experts have no idea about the distribution of their development cost. All they can state is that "we are 90% sure it will be somewhere between $450,000 and $650,000."
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(B) Company experts can still make the same two statements as in (A), but now they can also state that "we believe the distribution is symmetric and its most likely value is about $550,000."
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(C) Company experts can still make the same two statements as in (A), but now they can also state that "we believe the distribution is skewed to the right, and its most likely value is about $500,000."

Recognize the legal framework surrounding labor, business practices, and their impacts on the economy and society.

Understand the economic and social implications of holding companies in the late 19th century.

Recognize the proposals to address social justice and poverty issues suggested by Henry George.

Identify the factors that influenced the identity of urban neighborhoods.

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Definitions:

Behaviorism

A psychological approach that studies observable and quantifiable aspects of behavior and the effects of the environment on those behaviors, excluding theories of mind.

Immediate Response

A swift reaction to a stimulus or situation without delay.

Learning

The process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences.

Experiments

A method of research in which variables are manipulated and controlled to investigate their effect on other variables, often used to determine causality.