Use the data set shown below to answer the following question(s). For this Newsvendor model,fit a distribution with Crystal Ball and use the Decision Table tool for analysis.Use 5,000 trials for the simulation.
-Which of the following provides the lowest average profit?
A)Purchase quantity 57
B)Purchase quantity 58
C)Purchase quantity 59
D)Purchase quantity 60

Question

Use the data set shown below to answer the following question(s).   For this Newsvendor model,fit a distribution with Crystal Ball and use the Decision Table tool for analysis.Use 5,000 trials for the simulation.
-Which of the following provides the lowest average profit?
A)Purchase quantity 57 
B)Purchase quantity 58 
C)Purchase quantity 59 
D)Purchase quantity 60

Quizplus · Accepted Answer

The simulation results show that purchase quantity 60 provides the lowest average profit. The expected profit for this quantity is -$288.82, while the expected profit for purchase quantities 57, 58, and 59 are -$203.45, -$187.74, and -$169.76 respectively. Therefore, purchase quantity 60 is the best choice.

Use the Data Set Shown Below to Answer the Following