Question
A book trader has taken out a 13-week lease on a small unit in a shopping mall prior to it being fitted out as a
A book trader has taken out a 13-week lease on a small unit in a shopping mall prior to it being fitted out as a new outlet by a major retailer. The trader intends to sell remaindered books, coffee table classics; selling for 3 each and childrens books selling 1 each. She has stock consisting of 2000of the former and 5000 of the later. The demand for the books per week is expected to vary as follows:
demand 3 books | probability | demand 1 books | probability | |||
100 | 0.1 | 300 | 0.2 | |||
120 | 0.1 | 325 | 0.2 | |||
140 | 0.2 | 350 | 0.3 | |||
160 | 0.3 | 375 | 0.1 | |||
180 | 0.15 | 400 | 0.12 | |||
200 | 0.15 | 425 | 0.08 |
Simulate the sales and use them to estimate the total revenue over the 13 wks the shop will be open.
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