Use the Information Below to Answer the Following Question(s)

question 6

Multiple Choice

Use the information below to answer the following question(s) .
Below is a spreadsheet for Trance Electronics.

Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows:
: normal with mean of 2,000,000 units and standard deviation of 400,000 units.
: uniform between $600,000,000 and $800,000,000.
: lognormal with mean of $150,000,000 and standard deviation $30,000,000.
: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim.Random Seed of 2.Run the simulation and answer the following questions using the Risk Solver Platform.
-What cumulative profit in the fifth year is likely to be realized with a probability of 0.50?

• A)$78,244,098
• B)$102,573,415
• C)$144,058,696
• D)$203,676,827

---

Definitions:

Fraud

The wrongful or criminal deception intended to result in financial or personal gain.

Insurer

A company that provides financial protection against specific risks to individuals or entities in exchange for premiums.

Automobile Theft

The act of unlawfully taking a motor vehicle without the consent of its owner.

Liable

Being legally responsible for something, typically involving financial compensation for harm or damages.