Question

Fullerton Bakery advertises fresh baked cookies which it sells for $3.50 per lb.

The demand per day for cookies follows normal distribution with mean 8 lbs

and standard deviation 1 lb. If the cookies are not sold at the end of the day,

it sells remaining cookies to a discount store which pays either $1.00, $1.25, $1.50,

or $1.75 per lb with equal probabilities based on their requirements.

Cookies cost bakery any where from $2.00 to $3.00 per lb uniformly distributed.

Bakery has asked you to help them in calculating profit per day if they produce

8 lbs of cookies every day. Answer following questions with 10 days simulation.

Generate daily demand using the following 10 random numbers for daily demand.   

These numbers were generated using seed value 100 in Data Analysis lnk..

0.011 0.037 0.165 0.510 0.748 0.343 0.754 0.052 0.708 0.172

Use following 10 random numbers for generating cost per lb.

These numbers were generated using seed value 200 in Data Analysis lnk..

0.021 0.839 0.682 0.945 0.225 0.327 0.252 0.119 0.098 0.409

Use following 10 random numbers for generating discount price per lb.

These numbers were generated using seed value 300 in Data Analysis lnk..

0.031 0.640 0.199 0.381 0.703 0.310 0.751 0.185 0.487 0.647

what is the probability that they will sell the cookies at regular price?

a. almost 50% of days

b. always

c. less than 20% of days

d. not enough information

Answer 1