University of Illinois, Urbana ChampaignBADM 374Homework 7.

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Simulation Assignment 1. Simulate 20,000 replications for the coin tossing simulation we did in class. Determine the standard error of the average amount won. Compute the 99% confidence interval (wh... ich equals average winning +/- z * standard error). Use the formula NORMSINV(1-/2) to get the value of z. (Later versions of Excel use NORM.S.INV(1-/2).) Here,  will equal 0.05 or 0.01 for 95% or 99% confidence. 2. For the preventive maintenance example we did in class, simulate 100 replacements (corrective or preventive) for a) only corrective maintenance b) preventive maintenance in 4 days (replacement in 4 days) and c) replacement in 5 days. Compute the 99% confidence interval for the time between replacements. Compute the 99% confidence interval for the cost per [Show More]

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