20.

(a) A businessman is considering taking over a certain new business. Based on past information and his own knowledge of the business, he works out the probability distributions of the monthly costs and sales revenues, as given here:

Use the following sequences of random numbers to be used for estimating costs and revenues.
Obtain the probability distribution of the monthly net revenue.
Sequence 1 82,84,28,82,36,92, 73,91,63,29, 27,26,92,63,83,03, 10,39, 10, 10, Sequence 2 39,72,38,29,71,83, 19,72,92,59, 49,39, 72,94,01,92, 72, 18,09,00.

(b) Repeat the analysis in

(a) using the following random number streams:
Sequence 1 20,63,46, 16,45,41,44,66, 87,26, 78,40,29,92,21,36,57,03,28,08, Sequence 2 23,57,99,84,51,29,41, 11,66,30, 41, 80, 62, 74, 64, 26, 41, 40, 97, 15,

Transcribed Image Text:

Cost (in Rs) Probability Sales revenue (Rs) Probability 17,000 0.10 19,000 0.10 18,000 0.10 20,000 0.10 19,000 0.40 21,000 0.20 20,000 0.20 22,000 0.40 21,000 0.20 23,000 0.15 24,000 0.05