msis case study

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  • Create a worksheet (you can name it WORKSHEET A1) that calculates the profit for Widgets assuming there is NO uncertainty.
  • Copy this to a new worksheet (WORKSHEET A2) that simulates random numbers for the assumptions above. Use a data table with Profit as the dependent variable, calculating 2500 rows (replications). Hint: This data table technique is described on pages 547-548 of the textbook.
  • Once this data table is created, enter a formula to calculate the Average of profit over the 2500 replications, as well as the minimum, maximum and standard deviation. Select the cells with these formula and copy and paste the values in them to a new location in the worksheet. Also calculate the percent of times that the Widget actually loses money. (Hint: Use a formula like this one =countif(B10:B2509,”<0”)/count(B10:B2509) to count the number of times the Widget loses money and divide that by the number of replications to get the percentage).
  • Press F9 five times and record the highest and lowest average profit from the data table those five times you pressed F9.

 

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