In Example 12.1, the possible profits vary from negative to positive for each of the 10 possible bids examined.   a.  For each of these, use @RISK’s RISKTARGET function to find the probability that...

In Example 12.1, the possible profits vary from negative to positive for each of the 10 possible bids examined.

a.  For each of these, use @RISK’s RISKTARGET function to find the probability that Miller’s profit is positive. Do you believe these results should have any bearing on Miller’s choice of bid?


b.  Use @RISK’s RISKPERCENTILE function to find the 10th percentile for each of these bids. Can you explain why the percentiles have the values you obtain?

Example 12.1