Obtain Another Set Random Numbers by Pressing the F9 (Recalculate)key

question 51

Essay

Obtain another set random numbers by pressing the F9 (recalculate)key.Do your results change significantly? Do the changes match your expectations? Explain your answer.
Suppose you are going to invest equal amounts in three stocks.The annual return from each stock is normally with mean 0.01 (1%)and standard deviation 0.06.The annual return on your portfolio,the output variable of interest,is the average of the three stock returns.Run @RISK,using 1000 iterations,on each of the scenarios described in the questions below,and report few results from the summary report sheets.

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Definitions:

Material

Substances or components that are used in the production or manufacturing of goods.

Underapplied Overhead

Happens when the overhead costs assigned to manufacturing are lower than the overhead expenses that were actually incurred.

Actual Overhead

Actual overhead refers to the direct costs actually incurred by a business for operations, including utilities, rent, and maintenance expenses.

Overhead Applied

The portion of overhead costs allocated to individual products or services based on an estimated or predetermined rate.