Suppose That Random Observations Are Needed from the Triangular Distribution

question 1

Essay

Suppose that random observations are needed from the triangular distribution whose probability density function is (a)Derive an expression for each random observation as a function of the uniform random number r.(b)Generate five random observations for this distribution by using the following uniform random numbers: 0.0956,0.5629,0.6695,0.7634,0.8426.(c)The inverse transformation method was applied to generate the following three random observations from this distribution: 0.09,0.64,0.49.Identify the three uniform random numbers that were used.d)Write an equation that Excel can use to generate each random observation from this distribution.

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Definitions:

Incremental Overhead

The additional indirect costs incurred due to a change in business activities, such as an increase in production volume.

Income Taxes

Taxes levied by a government directly on income, especially an annual tax on personal or corporate earnings.

Sunk Costs

Sunk costs are expenses that have already been incurred and cannot be recovered.

Opportunity Costs

The forfeiture of possible benefits from different options when selecting one option over the others.