What should Lynn (and you) learn from the answers to questions e and f? How much of her salary would she have contributed to this retirement plan, and how much money could she expect to have accumulated at age 60? Now suppose that Lynn contributes nothing to her retirement fund for eight years and then begins contributing $3,000 annuallly until age 60.

How much of her salary would she have contributed to this retirement plan and how much money could she expect to have accumulated at age 60?ДЇ. Suppose Lynn contributes $3,000 annually to her retirement fund for eight years and then terminates her annual contributions. How much should Lynn invest each year if she wants there to be a 90% chance of having at least $1 million in her retirement fund at age 60?Д®. What is the probability that Lynn will have more than $1 million in her retirement fund when she reaches age 60?Д. Construct a 95% confidence interval for the average amount Lynn will have at age 60.Д¬. If Lynn is 30 years old now, how much money should she expect to have in her retirement fund at age 60?Д«. Lynn is not certain what rate of return this investment will earn each year, but she expects each yearвЂ™s rate of return could be modeled appropriately as a normally distributed random variable with a mean of 12.5% and standard deviation of 2%.ДЄ. To ensure that her retirement is comfortable, she intends to invest $3,000 of her salary into a tax-sheltered retirement fund at the end of each year.

Although she lilkes her job, she is also looking forward to retiring one day. Lynn Price recently completed her MBA and accepted a job with an electronics manufacturing company.

Answer all questions and discuss in case you find differences to your solution in part a). Instead, build a model and vary the order quantity in between 50, 60, 70, 80, 90, 100, 110 using the PsiSimParam function as discussed in section 12.14.2. The following functions will help with this problem (you may need others also which you have used before): PsiPoisson (see page 577) Psimin and Psimax (see pages 602-603) Psitarget (see page 596). Solve as a combination of simulation/optimization. How likely is it that the store owner will make between $6,000 and $7,000 if she implements your suggestion?ДЄ. How likely is it that the store owner will make at least $7,000 if she implements your suggestion?Д. What are the best-case and worst-case outcomes the owner may face on this product if she implements your suggestion?Д¬. How many jackets should the store owner order if she wants to maximize her expected profit?Д«. The store owner can order jackets in lot sizes of 10 units.ДЄ. The demand for jackets is expected to follow a Poisson distribution with an average rate of 80. Any unsold jacket at the end of the season are sold for $45. Each ski jacket costs $54 each and can be sold during the ski season for $145. The owner of a ski apparel store in Winter Park, Colorado must make a decision in July regarding the number of ski jackets to order for the following ski season. Solve the following problems in Excel using Excel add-in- вЂanalytical solver platformвЂ™ (due Thursday, oct 29th) Assignments: It is strongly recommended that you create a separate file for each of these problems in order to avoid that the simulation runs interfere with each other.

Analytic solver platform