-The probability value of good economic conditions that would make distributing
ID: 3274015 • Letter: #
Question
-The probability value of good economic conditions that would make distributing through a wholesaler or direct sales equal would be_______.
-The probability value to equate wholesaler and own store would be _________.
Sensitivity analysis P (good economic conditions) Wholesale (in mil.) Direct (in mil.) Own store (in mil.) 0 $60.00 $12.50 -$112.50 0.1 ? $19.50 -$83.50 0.2 $63.00 ? -$54.50 0.3 $64.50 $33.50 -$25.50 0.4 $66.00 $40.50 ? 0.5 ? $47.50 $32.50 0.6 $69.00 ? $61.50 0.7 $70.50 $61.50 ? 0.8 ? $68.50 $119.50 0.9 $73.50 ? $148.50 1 $75.00 $82.50 ? Sensitivity analysis- exact value P (good economic conditions) Wholesale (in mil.) Direct (in mil.) 0.863 $72.95 $72.91 ? $72.95 $72.92 0.8632 $72.95 $72.92 ? $72.95 $72.93 0.8634 $72.95 $72.94 0.8635 $72.95 ?Explanation / Answer
The wholesale and direct sales are equal at the value of $72.95 million dollars.
The probability value of good economic conditions that would make distributing through a wholesaler or direct sales equal would be 0.8635. (Ans).
For each million dollar increase in wholesale, own store increases by 19.3333 million dollars. The value at which they are equal is approximately 69.41million dollars.
The approximate probability value at which they are equal is 0.6273. (Ans).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.