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As the owner of a rent-a-car agency you have determined the following statistics: Potential Rentals Daily Probability Rental Duration Probability 0 .10 1 day .50
As the owner of a rent-a-car agency you have determined the following statistics:
Potential Rentals Daily | Probability | Rental Duration | Probability |
0 | .10 | 1 day | .50 |
1 | .15 | 2 day | .30 |
2 | .20 | 3 days | .15 |
3 | .30 | 4 days | .05 |
4 | .25 |
The gross profit is $40 per car per day rented. When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost. Each day a car is unused costs you $5 per car. Your firm initially has 4 cars.
a. Conduct a 10-day simulation of this business using Row #1 below for demand and Row #2 below for rental length. | ||||||||||||
Row #1: | 63 | 88 | 55 | 46 | 55 | 69 | 13 | 17 | 36 | 81 | ||
Row #2: | 59 | 09 | 57 | 87 | 07 | 92 | 29 | 28 | 64 | 36 |
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