Free Essay

Qat1 Task 1

In: Business and Management

Submitted By summersanz
Words 352
Pages 2
Data Expected Value
Category name Value Frequency Probability Cumulative Probability Random No interval
Category 1 $ 22.00 0.02 0.02 0.02 2
Category 2 $ 23.00 0.35 0.35 0.37 37
Category 3 $ 24.00 0.16 0.16 0.53 53
Category 4 $ 25.00 0.44 0.44 0.97 97
Category 5 $ 28.00 0.03 0.03 1 100
Category 6 0 1 100
Total 1 The probability for each cost is shown. The total of probability is 1.
We find the cumulative probability to assign range to each category.
Each category is represented by a range of random numbers between 1 to 100. To match the probability with random numbers we multiply cumulative probability by 100

So Labor Cost per Unit
Random numbers 1 to 2 represents $ 22.00
Random numbers 3 to 37 represents $ 23.00
Random numbers 38 to 53 represents $ 24.00
Random numbers 54 to 97 represents $ 25.00
Random numbers 98 to 100 represents $ 28.00

so if random number is 75 then it is in range 54--97 so labor cost is $ 25 Similarly for Utilities cost Expected Value
Category name Value Frequency Probability Cumulative Probability Random No interval
Category 1 $ 3.00 0.36 0.36 0.36 36
Category 2 $ 4.00 0.59 0.59 0.95 95
Category 3 $ 6.00 0.05 0.05 1 100
Category 4 0 1 100
Category 5 0 1 100
Category 6 0 1 100
Total 1 The probability for each cost is shown. The total of probability is 1.
We find the cumulative probability to assign range to each category.
Each category is represented by a range of random numbers between 1 to 100. To match the probability with random numbers we multiply cumulative probability by 100

So Utilities Cost
Random numbers 1 to 36 represents $ 3.00
Random numbers 37 to 95 represents $ 4.00
Random numbers 96 to 100 represents $ 6.00
Random numbers so if random number is 97 then it is in range 96-100 so utilities cost is $ 6.

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