Question

Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $600 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9600. Micromedia rents computers for its seminars at a cost of $60 per computer per day, which must be reserved and paid for before the seminar. There is no refund for unused computers. The demand for the seminar varies as follows:

Demand    Probability
10    0.15
20    0.40
30    0.30
40    0.10
50    0.05

Build a simulation model to find out what would be a good number of computers reserved now. Then run it 10,000 times (with 2-way data-table with "computers to reserve now" as the row input). Note that Micromedia cannot admit students any more if they run out of the reserved computers. That is, if there are more students who like to attend the seminar than the number of computers reserved, the excess students cannot attend the seminar.

Question 1 (2 points)

If they reserve 15 computers now, the average profit is

Your Answer:

Question 2 (2 points)

If they reserve 30 computers now, the average profit is

Your Answer:

Question 3 (2 points)

If they reserve 45 computers now, the average profit is

Your Answer:

Answer 1

A . Develop a model for the total cost to put on the seminar. Let x represent the number of students enroll in the seminar.So… tc=9600+60x

the tc=total cost to put on seminarx=# of students who will enroll.

B. Develop a model for the total profit if x students enroll in the seminar

.So… tp=600x-(9600+60x)

tp=total profit for seminar.

C. Micromedia has forecasted an enrollment of 30 students for the seminar.

How much profit will be earned if its forecast is accurate? $6,600

Tp=600(30)-(9600+60(30))=6600.

D.Compute the breakeven point.tp=600x-(9600+60x)

0=600x-(9600+60x)

9600+60x=600x

9600=600x-60x

9600=540x

9600/540=540x/540

17.778=x

So… the breakeven point is 18 students.

ANSWERED

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