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

question 17

Multiple Choice

Use the table below to answer the following question(s) .
The Atlas Movies Theater has repriced their ticket rates to maximize revenues.They have three classes of tickets: Classic, Silver, and Gold.The table below provides information on the average ticket sales, revenue and price elasticity on demand.They have a total seating capacity of 300.The table also provides the new price for the three classes obtained using Solver.

Assume the distributions of elasticities for three classes of tickets are uniform with minimum and maximum values equal to 75% and 125% of their estimated values, respectively.Under this assumption, use Monte Carlo simulation to answer the following questions.The model is simulated for 10,000 trials.
-What is the value of standard deviation obtained from the simulation results?

• A)5
• B)4
• C)8
• D)10

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Definitions:

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for non-cash transactions, depreciation, and changes in working capital to calculate cash flow from operating activities.

Operating Activities

Operating activities involve the day-to-day functions that are directly related to producing and delivering a company's goods and services, contributing to cash inflows and outflows during a period.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash operating activities to calculate net cash provided by operating activities.