Estimates of Normal Distribution: 1285319

1. Estimates of normal distribution

Averages price at normal distribution is 19.44

The Standard Deviation is 4.37

• The probability that Q3 2013 is greater than 3 million is

0.6 From the frequency distribution.

       c) Parameters of uniform distributions

• Probabilities that Kony’s profit is less than 0 is  0.19
•  The probability is 0.8

Question two

1. For 1,000,000 contact quantity and exercise profit of $16.75 the Net profit is $111,714,790

And for 2,000,000 contact quantity and exercise profit of $17 per LCD the Net profit is $102,659,676

• The probability is less than 0 is 7/19 = 0.37

Question Three

1. -$5,655,852
2. The Loss increased.
3. The Sport price. Because it increases the price of LCD which is not easily available.

Question Four

1. The optimum quantity that gives a profit is 2,323,463
2. The change in Kony’s profit $14,108,122 – $14,646,487 = $538,366
3. Sport Price. Raises the price of the product in demand.
4. The factor that drives the option contract quantity is the supply and demand curve. If the supply is low the price will go high if the demand goes high and vice verses.

Question Five

1. The quantity offered for Kony is 2,170,000
2. 2,323,463

Question six

1. In the analysis Q1 does best $63,135,800 as compared with the others.
2. Expected profit $ 2,258,557.
3. The sport price imposed the LCD module.
4. The demand for the finished product.
5. Q2. It has the highest returns.
6. The profit will reduce due to the imposition of sport price.
7. The availability of the scarce module which is part of the special and important part of the production.