Use the Information Below to Answer the Following Question(s) We Assume That the Production (Demand)volume Is Normally Distributed with the Following

question 19

Multiple Choice

Use the information below to answer the following question(s) .
Consider the following spreadsheet for an outsourcing decision model.
$$\begin{array} { | l | l | l | } \hline 1 & \ { \text { A } } & \text { B } \\\hline 2 & \text { Outsourcing Decision Model } & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Manufactured in-house } & \\\hline 6 & \text { Fixed cost } & \$ 60,000 \\\hline 7 & \text { Unit variable cost } & \$ 130 \\\hline 8 & & \\\hline 9 & \text { Purchased from supplier } & \\\hline 10 & \text { Unit cost } & \$ 180 \\\hline 11 & & \\\hline 12 & \text { Demand volume } & \$ 1,600 \\\hline 13 & & \\\hline 14 & \text { Model } & \\\hline 15 & & \\\hline 16 & \text { Total manufacturing cost } & \\\hline 17 & \text { Total purchased cost } & \\\hline 18 & & \\\hline 19 & \text { Difference } & \\\hline 20 & \text { Decision } & \\\hline\end{array}$$
We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100.For the unit cost, select the triangular distribution.It has a minimum value of $150, most likely value of $165, and a maximum value of $190.The number of trials per simulation is equal to 5,000 at a Sim.Random Seed of 1.Run the simulation and answer the following question(s) using the Risk Solver Platform.
-What is the cost difference upper cutoff if the likelihood is 75%?

• A)approximately 46
• B)approximately 28
• C)approximately 32
• D)approximately 59

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Definitions:

Chi-squared Distribution

A distribution used in statistics that measures how expectations compare to actual observed data, particularly in the context of categorical variables.

Binomial Distribution

A probability distribution that represents the number of successes in a fixed number of independent trials, with each trial having only two possible outcomes and a constant probability of success.

Interval Data

A type of numerical data that involves measurements where the distance between values is meaningful, including temperature scales, but does not have a true zero.

Interval Data

A type of numerical data in which the intervals between values are meaningful, but there is no true zero point, allowing for operations like addition and subtraction.