Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Business decision model/probability question, please answer with detailed procedures and calculations. Need explanations. Will rate helpful. Question 17 (8 points) Henry has a newspaper stand
Business decision model/probability question, please answer with detailed procedures and calculations. Need explanations. Will rate helpful.
Question 17 (8 points) Henry has a newspaper stand where he sells papers for $0.50 each. The papers cost him $0.30 each, giving him a 20-cent profit on each one he sells. From past experience, Henry knows that 20% of the time he sells 100 papers 20% of the time he sells 150 papers 30% of the time he sells 200 papers 30% of the time he sells 250 papers Assuming that Henry believes the cost of a lost sale is 10 cents and any unsold papers cost him $0.30, simulate Henry's profit outlook over 5 days if he orders 175 papers for each of the 5 days. Use the following random numbers: 52, 06, 50, 88, 53. Calculate Henry's average profit over the 5 day period. For part marks, be sure to show your work. ParagraphStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started