Question
You have been hired as a consultant for a restaurant. The restaurant owners would like you to build a simulation model to study spending by
You have been hired as a consultant for a restaurant. The restaurant owners would like you to build a simulation model to study spending by customers. They have provided the following information to you: Drink spending is integer valued and uniformly distributed between $2 and $6. An appetizer is ordered by 30 per cent of customers. Among those who order an appetizer, their appetizer spending is normally distributed with a mean of $5 and a standard deviation of $1. A main course is ordered by 70 per cent of customers. Among those who order a main course, their main course spending is normally distributed with a mean of $9 and a standard deviation of $2. A dessert is ordered by 20 per cent of customers. Three desserts are offered, priced at $3.50, $4.00 and $5.00. Customers are equally likely to order any one of these three desserts. Requirements Develop a simulation model (with at least 5,000 iterations) using the information on probability distributions given above. Once you have simulated the data, analyze it using appropriate statistical techniques and provide the following information to the restaurant management.
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