# Estimate of the probability of a loss Assignment | Get Paper Help

1. Salemach Corporation is a start-up company that manufactures simple machines. It is interested in analyzing the profit from a new machine. It estimates that the selling price will be \$150 per unit and the setup and advertising costs will total \$250,000. The company estimates that the per unit raw material cost is uniformly distributed between \$50 and \$80 and are equally likely. The demand is normally distributed with a mean of 12,000 units and a standard deviation of 3,000 units. The probability distribution for a range of labor cost per unit is given below.

 Labor Cost Probability \$52 0.05 \$53 0.25 \$54 0.40 \$55 0.25 \$56 0.05

1. Obtain estimates for the mean profit, maximum profit, minimum profit, and standard deviation of profit.
1. What is your estimate of the probability of a loss?

## Looking for help with your homework? Grab a 30% Discount and Get your paper done! 30% OFF Turnitin Report Formatting Title Page Citation
Place an Order