For the Monte Carlo Simulation Results Shown in the Following

question 13

Multiple Choice

For the Monte Carlo simulation results shown in the following table,determine the average simulated demand. $$\begin{array} { | c | c | c | } \hline \text { Day } & \begin{array} { c } \text { Random } \\\text { Number }\end{array} & \begin{array} { c } \text { Simulated } \\\text { Demand }\end{array} \\\hline 1 & 0.64 & 10 \\\hline 2 & 0.00 & 0 \\\hline 3 & 0.25 & 5 \\\hline 4 & 0.92 & 20 \\\hline 5 & 0.50 & 10 \\\hline 6 & 0.68 & 10 \\\hline 7 & 0.67 & 10 \\\hline 8 & 0.16 & 5 \\\hline 9 & 0.48 & 10 \\\hline 10 & 0.51 & 10 \\\hline 11 & 0.09 & 0 \\\hline 12 & 0.13 & 0 \\\hline 13 & 0.25 & 5 \\\hline 14 & 0.76 & 10 \\\hline 15 & 0.00 & 0 \\\hline\end{array}$$

• A)3
• B)7
• C)5
• D)9

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Definitions:

Average Total Cost

The total cost divided by the number of goods or services produced, representing the per unit cost of production.

Total Fixed Cost

Total fixed cost refers to the sum of all costs required to produce any output in which these costs do not change with the level of output.

Total Variable Cost

The total of expenses that vary directly with the volume of production or sales, such as materials and labor.

Average Total Cost

The sum of all production expenses, both fixed and variable, divided by the total quantity of units manufactured.