Susan Seedhead sells fresh roses at the airport, daily. Roses cost her $0.3 each and she sells them for $0.8. There is no salvage value for unsold roses. Susan believes that the size of her rose display affects her demand. The number of roses she has at the beginning of the day is n. Daily demand follows a normal distribution with = Mean (400+n/20) Standard deviation (50+n/10) How many roses (n) should she start the day with, either 300, 350, or 450? Develop a simulation model to answer these questions. Develop your analysis so that the 99.73% Margin of Error for the Confidence Interval is less than 1.0. Hint: to check your model, evaluate it when initial inventory equals 0 and when initial inventory equals 1,500. In both these cases, expected profit is zero or negative.
Susan Seedhead sells fresh roses at the airport, daily. Roses cost her $0.3 each and she sells them for $0.8. There is no salvage value for unsold roses. Susan believes that the size of her rose display affects her demand. The number of roses she has at the beginning of the day is n. Daily demand follows a normal distribution with = Mean (400+n/20) Standard deviation (50+n/10) How many roses (n) should she start the day with, either 300, 350, or 450? Develop a simulation model to answer these questions. Develop your analysis so that the 99.73% Margin of Error for the Confidence Interval is less than 1.0. Hint: to check your model, evaluate it when initial inventory equals 0 and when initial inventory equals 1,500. In both these cases, expected profit is zero or negative.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 22PFA
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 9 images
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL