The Owner of Fix-A-Dent Auto Repair Wants to Study the Growth

question 56

Multiple Choice

The owner of Fix-a-dent Auto Repair wants to study the growth of his business using simulation. He is interested in simulating the number of damaged cars and the amount of damage to the cars each month. He currently repairs 100 cars per month and feels this can vary uniformly between a decrease of as much as 3% and an increase of up to 5% (average change of 1%) over the previous months. The dollar value of the damage to the cars is a normally distributed random variable with a mean of $3,000 and a standard deviation of $500. The average repair bill has been increasing steadily over the years and the owner expects the mean repair bill will increase by 1% per month. You have created the following spreadsheet to simulate the problem.

-Using the information in Exhibit 12.1, what formula should go cell G5 to calculate the 80^th percentile of the empirical distribution of income?

• A)=IF(RANK(D21) = 80, 1, 0)
• B)None, use Excel Histogram on cell D21.
• C)=IF(COUNTIF(D8:D19 > D21) - 8, 1, 0)
• D)=PsiPercentile(B21, .8).

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Definitions:

Contracts

Legally enforceable agreements between two or more parties with mutual obligations.

Special Treatment

Preferential or distinctive handling or consideration given to an individual or entity under specific circumstances.

Hand Wax

A detailing service for vehicles involving the application of wax to the car's exterior by hand to protect and enhance its paint finish.

Spray Wax

A product designed for quick and easy application to a vehicle's exterior to enhance its shine and provide a thin protective layer.