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

question 4

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 is the correlation of the market size with the NPV with reference to the sensitivity chart?

• A)0.043
• B)0.910
• C)-0.341
• D)-0.026

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Definitions:

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically earning a commission for facilitating transactions.

Suitable Space

An area or location that meets the required specifications and is appropriate for a particular purpose or activity.

Kansas City

A major city in the state of Missouri known for its jazz heritage, barbecue cuisine, and cultural landmarks.

Selling Agents

Intermediaries who represent either the buyer or seller on a permanent basis, unlike brokers who represent clients on a deal-by-deal basis.