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

question 43

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 R&D cost with the NPV with reference to the sensitivity chart?

• A)-0.361
• B)0.028
• C)0.908
• D)-0.194

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Definitions:

High Process Control

A situation where there is strict regulation and management of the procedures and methods utilized in production or in carrying out tasks.

Third-party Conflict

A type of conflict resolution involving an outside party who intervenes to help the conflicting parties reach a resolution.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a dispute between two or more entities.

Saving Face

The act of preserving one's reputation, dignity, or respect in a social context.