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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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