Use the data shown below to answer the following question(s).
Captain Jack Automobiles launched a new car and tabulated the below data for the new launch. The project manager identified the following distributions and parameters for these variables:
Market size: normal with a mean of 2,000,000 units and a standard deviation of 400,000 units
R&D costs: uniform between $639,000,000 and $781,000,000
Test Drives: lognormal with mean of $160,000,000 and standard deviation $16,000,000
Annual market growth factor: triangular with minimum = 2%,maximum = 6%,and most likely = 3%
Annual market share growth rate: triangular with minimum = 15%,maximum = 25%,and most likely = 20%
Use 5,000 trials to generate the simulation model using Crystal Ball.
-The individual using Crystal Ball to simulate the given data should treat the cell containing the value of market size as a(n)________.
A)forecast
B)decision
C)assumption
D)run preference

Question

Use the data shown below to answer the following question(s).
Captain Jack Automobiles launched a new car and tabulated the below data for the new launch.  The project manager identified the following distributions and parameters for these variables:
Market size: normal with a mean of 2,000,000 units and a standard deviation of 400,000 units
R&D costs: uniform between $639,000,000 and $781,000,000
Test Drives: lognormal with mean of $160,000,000 and standard deviation $16,000,000
Annual market growth factor: triangular with minimum = 2%,maximum = 6%,and most likely = 3%
Annual market share growth rate: triangular with minimum = 15%,maximum = 25%,and most likely = 20%
Use 5,000 trials to generate the simulation model using Crystal Ball.
-The individual using Crystal Ball to simulate the given data should treat the cell containing the value of market size as a(n)________.
A)forecast 
B)decision 
C)assumption 
D)run preference

Quizplus · Accepted Answer

In Crystal Ball, a cell containing the value of market size should be treated as an "assumption." This is because assumptions in Crystal Ball are inputs or variables that are subject to uncertainty and are used to drive the simulation model, reflecting the uncertain nature of market size estimations.

Use the Data Shown Below to Answer the Following Question(s)