Answered You can hire a professional tutor to get the answer.
Je has decided to order 100 papers from his supplier. Je pays $1.25 for each paper he orders and sells each paper for $2. Unsold newspaper have no...
Je has decided to order 100 papers from his supplier. Je pays $1.25 for each paper heorders and sells each paper for $2.00. Unsold newspaper have no resale value. Je wants touse simulation technique to calculate the potential yearly prot.1. First, what is the random variable we are given in the problem?2. What is the probability distribution of the random variable from question 1? Youonly need to generate either the probability density or the cumulative distribution.3. What is the formula for calculating prot in our problem? (Note: you need to takeinto account the maximum number of newspaper that can be sold. i.e. you can only sell thesmaller of the two: as many as you have ordered or as many as it is demanded.)4. Simulate 1 year (52 sundays) of operation to calculate Je's total yearly prot.5. Replicate this calculate 200 times.6. What is the average and the standard deviation of yearly prot?7. Je would like to investigate the protability of ordering 50, 100 and 150 papers atthe start of each sunday. Which order quantity would you recommend and why?
