MAT 540-Quantitative Methods
Dr. Raymond Ottinot
February 5, 2013
Jet Copies is a business venture of a couple of young men who had the insight to open up a copy business. James Ernie and Terri received a loan from Terri’s parents of $18,000. Due to information they have received the large copier they purchased has a history of breakdowns often for a few days. So the three guys are looking into possibly getting a smaller copier. The purchase of the smaller copier can be used while the other larger copier is being repaired. Before they ask anyone about loaning them any additional money they would like to come up with a simulation to show why the purchase of the smaller copier would be beneficial. The cost of the smaller copier is $12,000.
I used originally 20 breakdowns but then I ended up going to 13 breakdowns. I then created a list of random numbers. The list of random numbers was figured out in excel with the formula =RAND. Which is depicted by the column r2. After obtaining these random numbers and then using the chart that was provided below I then reviewed my random numbers to see where they fell inline with the repair time day chart. The chart was gathered by Terri from the college of business in which the point was to try and get an understanding how long it would take to get the copier that they purchased repaired if in fact it did break down. Using her chart I then created another list of random numbers using the same formula =RAND, which is depicted in column labeled r1. I then looked at my random numbers to see where they fell in with Terri’s data chart to see how the random numbers turned into how many days it would take to fix. Next we had to figure out the time between breakdowns. The formula that was used to obtain the time between breakdowns is (6x sqrt x r1). This information is depicted in the column labeled Time between Breakdowns. Next I...