Assignment Task:
Two simplifications have been made in this spreadsheet:
1. The "Error in Estimating WTP" is set to 0%, so that Actual WTP = Estimated WTP (i.e., column M = column O). This makes your analysis simpler to do and explain.
2. All Uniformly-distributed random numbers between 0 and 1, indicated in purple in columns B, L, and N, have been hard-coded. In a real implementation, these cells would all contain the formula =RAND() so that their values would update each time the sheet is refreshed (by pressing Shift-F9). Instead, we have already picked these random numbers, which correspond to a single run of the implemented simulation. We fixed these numbers to make grading easier (i.e., your answers depend only on the data given, not random draws). Of course, so long as the purple cells are hard-coded rather than being random, we have a model for only a single particular run of the simulation, rather than a general model which can re-run the simulation to get different results (based on different randomly-generated U[0,1] numbers).