Question
Bottleco produces six-packs of soda cans. Each can is supposed to contain at least 12 ounces of soda. If the total weight in a six-pack
Bottleco produces six-packs of soda cans. Each can is supposed to contain at least 12 ounces of soda. If the total weight in a six-pack is under 72 ounces, Bottleco is fined $100 and receives no sales revenue for the six-pack. The amount put in each can by a machine is normally distributed with standard deviation 0.10 ounce. To avoid a fine, the company sets the filling machine to fill each can to 12.08 ounces. 1. Simulate production of 1000 six-packs of soda. What percentage of time is the company fined? 2. Each six-pack sells for $3.00. It costs Bottleco $0.02 per ounce of soda put in the cans. Based on their fill strategy (12.08 ounces per can), how much revenue do they earn per six-pack based on your simulation. 3. What mean fill quantity would you recommend (within 0.05 ounce) that maximizes expected profit per six-pack?
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