Using the information in Exhibit 12.1, what Analytic Solver Platform function should go in cell C8 and copied to cells C9:C19 to compute the average damage per car in the month?
A) =PsiNormal($C$3*$F$3^$A$8, $H$3)
B) =PsiNormal($C$3*$F$3^A8, $H$3)
C) =PsiNormal($C$3, $D$3*(1+$F$3)^A8)
D) =PsiNormal($C$3*(1+$F$3)^A8, $H$3)

Question

Quizplus · Accepted Answer

The function to compute the average damage per car in the month should take into account the growth rate of the number of cars, which is given by the parameter F3. Therefore, the function should use $C$3*(1+$F$3)^A8 as the first argument, which represents the expected value of the damage per car, taking into account the expected growth rate. The second argument should be $H$3, which represents the standard deviation of the damage per car. Option D is the only one that meets these requirements.

Using the Information in Exhibit 12