2. TV Advertising (20 points) A TV Station has 20 thirty-second advertising slots during their regularly scheduled programming each evening. The station is now selling advertising for the first few days in November. It could sell some or all the slots immediately for $4500 each. Whatever slots that it doesn't see immediately, the station manager knows that she may be able to sell them for a price at $8,000 each to political candidates (since November 7th is an election day). From prior years, she estimates that the demand for these political slots corresponds to the following probability distribution: Demand 8 9 Probability 0.03 0.05 10 0.1 11 0.15 12 13 0.2 0.15 14 0.1 15 0.05 16 0.05 17 18 0.05 0.05 0.02 Slots not sold to political candidates can be readily sold at the last minute to local advertisers at a price of $2000. a) How much revenue will the station receive if the station manager sells all the advertising slots in advance? (Handwrite answer. 5 points) b) Construct a Simulation Modeling Template for estimating the revenue that the station will receive if the station manager sells 10 slots in advance. Do a manual simulation of the revenue for 10 trials using random numbers: 0.9642 0.34413 0.20232 0.94271 0.05192 0.20501 0.17359 0.09059 0.63029 0.72947 Please specify your Process Generator(s). Based on your 10 trials, give an approximation of the Risk Profile. What is the expected revenue over your 10 trials? Based on your 10 trials which of the two possibilities, selling 10 or 20 in advance, do you recommend? Why? (Handwrite answer. 5 points) c) Translate your Modeling Template in part (b) to EXCEL and simulate using EXCEL for 1000 trials. What is the expected revenue? (Submit via Canvas. 5 points) d) What gives the higher expected revenue - selling 10 in advance or selling 20 in advance? What is the probability that selling 20 in advance will give a higher revenue than selling 10? What is the approximate Risk Profile of selling 10 in advance using the bin range of $100,000, $105,000, ..., $125,000? (Submit via Canvas. 5 points)