Question
Construct a simulation table to simulate 28 days of the banking simulation similar to the one in class. The initial balance is $1750. Each week
Construct a simulation table to simulate 28 days of the banking simulation similar to the one in class. The initial balance is $1750. Each week a withdrawal of $200 is made for living expenses, starting on day 7. A withdrawal of $50 (for additional expenses) is made from the ATM randomly, according to an inter arrival time that is given by an exponential distribution with mean of 3.5 days (i.e., use 3.5 ln where R is uniformly distributed) --- truncate the time to 1 decimal place. Determine the average balance in the account over the 28 day period. You may use RAND() values from Excel. Rounding the dates to a single decimal place should not affect the answer significantly.
Step 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