READ THE QUESTIONS PLEASE: Just two questions. I leave ratings! Micromedia offer

Question

READ THE QUESTIONS PLEASE: Just two questions. I leave ratings!

Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $600 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9600. Micromedia rents computers for its seminars at a cost of $60 per computer per day, which must be reserved and paid for before the seminar. There is no refund for unused computers. The demand for the seminar varies as follows:

Demand    Probability
10    0.15
20    0.40
30    0.30
40    0.10
50    0.05

Build a simulation model to find out what would be a good number of computers reserved now. Then run it 10,000 times (with 2-way data-table with "computers to reserve now" as the row input). Note that Micromedia cannot admit students any more if they run out of the reserved computers. That is, if there are more students who like to attend the seminar than the number of computers reserved, the excess students cannot attend the seminar.

Question 9 (2 points)

If they reserve 45 computers now, the 95th percentile of the simulated profit is

Your Answer:

Question 10 (2 points)

If they reserve 45 computers now, the 20th percentile of the simulated profit is

Your Answer:

Explanation / Answer

8)

expected value

= 10*.15+20*.4+30*.3+40*.1+50*.05 =25

using R we can sample using

a<-c(10,20,30,40,50)
p<-c(.15,.4,.3,.1, .05)
t<-sample(x=a,10000,prob=p, replace = T)

9)

cost = 45*60 +9600 =12300

revenue = 600*p

from R we get the 95% percetile from

quantile(t, .95)

we have p =40

so profit =  600*40 - 12300 =11700

10)

quantile(t, .2)

=20

gives 20% percentile

so profit

600*20 - 12300= -300

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