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A book trader has taken out a 13-week lease on a small unit in a shopping mall p

ID: 445988 • Letter: A

Question

A book trader has taken out a 13-week lease on a small unit in a shopping mall prior to it being fitted out as a new outlet by a major retailer. The trader intends to sell remaindered books, coffee table classics; selling for 3 each and children’s books selling 1 each. She has stock consisting of 2000of the former and 5000 of the later. The demand for the books per week is expected to vary as follows:

demand 3 books

probability

demand 1 books

probability

100

0.1

300

0.2

120

0.1

325

0.2

140

0.2

350

0.3

160

0.3

375

0.1

180

0.15

400

0.12

200

0.15

425

0.08

Simulate the sales and use them to estimate the total revenue over the 13 wks the shop will be open.

demand 3 books

probability

demand 1 books

probability

100

0.1

300

0.2

120

0.1

325

0.2

140

0.2

350

0.3

160

0.3

375

0.1

180

0.15

400

0.12

200

0.15

425

0.08

Explanation / Answer

Solution :

We will take first 6 R.No from Table 4 , Random Nos

From above table its clear that demand 180 is 3 nos that more no.

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We will take first 6 R.No from Table 4 , Random Nos

  From above table its clear that demand 375 is 3 nos that more no.

Sr.No demand 3 books probability Cumulative probailty R.No Interval 1 100 0.1 0.1 00-09 2 120 0.1 0.2 10-19 3 140 0.2 0.4 20-39 4 160 0.3 0.7 40-69 5 180 0.15 0.85 70-84 6 200 0.15 1 85-99
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