QUESTION FIVE: (20 MARKS)

For a particular shop, the daily demand of an item with associated probabilities is given below:

For the sequence of random numbers (out of 100 random numbers generated between 00-99) used are as 81, 92, 70, 52, 46, 38, 05, 25, 15, 34.

(a) Simulate the data and calculate the average daily demand. (10 marks)

(b) Discuss how the information in (a) above would be of importance to the shop owners. (6 marks)

(c) For how many days is the daily demand less than 40 (4 marks)