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Q3: A small retailer has studied the weekly cash flows past data and developed the following information Inflow (S) probability probability Outflow (S) 0.3 5000
Q3: A small retailer has studied the weekly cash flows past data and developed the following information Inflow (S) probability probability Outflow (S) 0.3 5000 0.2 4000 0.4 6000 0.3 5000 0.2 8000 0.4 7000 Using the random numbers for a period of 6 weeks given below: 38 73 55 17 46 Outflows: 68 6 30 72 46 88 Inflows: 9 a) Simulate the weekly pattern of Outflows and Inflows for the next 6 weeks to devise better cash management for the company b) Formulate the expected balance at the end of 6 weeks assuming that the beginning bank balance is $7000
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