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Please set up a Monte Carlo simulation based off this data and situation. Step by step directions of the process you took to do so
Please set up a Monte Carlo simulation based off this data and situation. Step by step directions of the process you took to do so would also be helpful.
A small convenience store is trying to determine the optimal weekly order size for People magazine. The store pays one dollar for each copy and sells it for $1.95. The unsold copies can be returned for $0.50 each. The probability distribution for the demand is given below:
Probability | Demand |
.10 | 15 copies |
.20 | 20 |
.30 | 25 |
.25 | 30 |
.15 | 35 |
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