Problem
A market survey company wants to study the investment in a detergent factory based
on three factors. These factors are
Independent of each other. The probability distribution of each are
Annual Demand Profit/Unit Required Investment
Units Probability Rs. Probability Rs. Probability
20 0.05 3.00 0.10 1,750.00 0.25
25 0.10 5.00 0.20 2,000.00 0.50
30 0.20 7.00 0.40 2,500.00 0.25
35 0.30 9.00 0.20
40 0.15 10.00 0.10
45 0.15
50 0.05
Use Monte-Carlo simulation for 1000 iterations and estimate the ROI percentage based on profit
{(Profit*Demand)/Investment}
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