Questions from Management Science

Q: Consider a situation where there is a cost that is either incurred

Consider a situation where there is a cost that is either incurred or not. It is incurred only if the value of some random input is less than a specified cutoff value. Why might a simulation of this s...

Q: Use @RISK to draw a binomial distribution that results from 50

Use @RISK to draw a binomial distribution that results from 50 trials with probability of success 0.3 on each trial, and use it to answer the following questions. a. What are the mean and standard dev...

Q: Use @RISK to draw a triangular distribution with parameters 200,

Use @RISK to draw a triangular distribution with parameters 200, 300, and 600. Then superimpose a normal distribution on this drawing, choosing the mean and standard deviation to match those from the...

Q: We all hate to keep track of small change. By using

We all hate to keep track of small change. By using random numbers, it is possible to eliminate the need for change and give the store and the customer a fair deal. This problem indicates how it could...

Q: Modify the Pigskin spreadsheet model so that demand in any of the

Modify the Pigskin spreadsheet model so that demand in any of the first five months must be met no later than a month late, whereas demand in month 6 must be met on time. For example, the demand in mo...

Q: A company is about to develop and then market a new product

A company is about to develop and then market a new product. It wants to build a simulation model for the entire process, and one key uncertain input is the development cost. For each of the following...

Q: If the number of competitors doubles, how does the optimal bid

If the number of competitors doubles, how does the optimal bid change?

Q: Rerun the new car simulation, but now use the RISKSIMTABLE function

Rerun the new car simulation, but now use the RISKSIMTABLE function appropriately to simulate discount rates of 5%, 7.5%, 10%, 12.5%, and 15%. Comment on how the outputs change as the discount rate de...

Q: In the cash balance model, the timing is such that some

In the cash balance model, the timing is such that some receipts are delayed by one or two months, and the payments for materials and labor must be made a month in advance. Change the model so that al...

Q: In the cash balance model, is the $250,000

In the cash balance model, is the $250,000 minimum cash balance requirement really “costing” the company very much? Answer this by rerunning the simulation with minimum required cash balances of $50,0...