Every home football game for the past eight years at Eastem State University has

Question

Every home football game for the past eight years at Eastem State University has been sold out. The revenues from ticket sales are significant, but the sale of food, beverages, and souvenirs has contributed greatly to the overall profitability of the football program. One particular souvenir is the football program for each game. The number of programs sold at each game is described by the following probability distribution: NUMBER IN 100s) OF PROGRAMS SOLD 23 24 25 26 27 PROBABILITY 0.15 0.22 0.24 0.21 0.18 Historically, Eastem has never sold fewer than 2,300 programs or more than 2,700 programs at one game. Each program costs S0.80 to produce and sells for S2.00. Any programs that are not sold are donated to a recycling center and do not produce any revenue (a) Simulate the sales of programs at 10 football games. Use the last column in the randonm number table (Table 13.4) and begin at the top of the column. (b) If the university decided to print 2,500 programs for each game, what would the average profits be for the 10 games simulated in part (a)? (c) If the university decided to print 2,600 programs for each game, what would the average profits be for the 10 games simulated in part (a)?

Explanation / Answer

b)

Number in (100) Programs sold Probability Cumulative Probability Random Number Interval 23 0.15 0.15 0 to 14 24 0.22 0.37 15 to 36 25 0.24 0.61 37 to 60 26 0.21 0.82 61 to 81 27 0.18 1 82 to 99 a) The demand forecasting for next 10 days , Using Random Number of Last column Days Random Numbers from Last column Demand 1 7 2300 2 60 2500 3 77 2600 4 49 2500 5 76 2600 6 95 2700 7 51 2500 8 16 2400 9 14 2300 10 85 2700 The demand is taken from Random number interval column For. E,g First Random Number is 7, The is belong random number interval 0 to 14 and corresponding demand is 2300

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