Asked by Earl Jeane Salazar on May 11, 2024

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Complete the following table in preparation for a Monte Carlo simulation.
If a random number of 77 is generated what is the demand?
 Demand  Probability  Cumulative  Probability  Interval of Random  Numbers 0.1211−253.3491−100\begin{array} { | c | c | c | c | } \hline \text { Demand } & \text { Probability } & \begin{array} { c } \text { Cumulative } \\\text { Probability }\end{array} & \begin{array} { c } \text { Interval of Random } \\\text { Numbers }\end{array} \\\hline 0 & & .1 & \\\hline 2 & & & 11 - 25 \\\hline 3 & & .3 & \\\hline 4 & & & \\\hline & & & 91 - 100 \\\hline\end{array} Demand 0234 Probability  Cumulative  Probability .1.3 Interval of Random  Numbers 112591100

Monte Carlo Simulation

An algorithm that utilizes multiple instances of random sampling to generate numerical outcomes, commonly applied in assessing risks and making decisions.

Cumulative Probability

The probability that a random variable is less than or equal to a specific value, representing the accumulation of individual probabilities.

Demand Probability

The likelihood or chance of a product or service being purchased at various levels of demand within a specific period.

  • Develop an understanding of Monte Carlo simulation and use it effectively in business environments.
  • Create numerical intervals derived from random number theories of probability distributions.
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MC
Marci CortezMay 17, 2024
Final Answer :
 Demand  Probability  Cumulative  Probability  Interval of Random  Numbers 0.1.101−102.15.2511−253.3.5525−554.35.956−906.1191−100\begin{array} { | c | c | c | c | } \hline \text { Demand } & \text { Probability } & \begin{array} { c } \text { Cumulative } \\\text { Probability }\end{array} & \begin{array} { c } \text { Interval of Random } \\\text { Numbers }\end{array} \\\hline 0 & .1 & .1 & 01 - 10 \\\hline 2 & .15 & .25 & 11 - 25 \\\hline 3 & .3 & .55 & 25 - 55 \\\hline 4 & .35 & .9 & 56 - 90 \\\hline 6 & .1 & 1 & 91 - 100 \\\hline\end{array} Demand 02346 Probability .1.15.3.35.1 Cumulative  Probability .1.25.55.91 Interval of Random  Numbers 011011252555569091100 RN 77 = Demand 4