Discuss the below:
Q: As the owner of a rent-a-car agency you have determined the following statistics:
|
Potential Rentals Daily
|
|
Probability
|
|
Rental Duration
|
|
Probability
|
|
0
|
|
.10
|
|
1 day
|
|
.50
|
|
1
|
|
.15
|
|
2 days
|
|
.30
|
|
2
|
|
.20
|
|
3 days
|
|
.15
|
|
3
|
|
.30
|
|
4 days
|
|
.05
|
|
4
|
|
.25
|
|
|
|
|
The gross profit is $40 per car per day rented. When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost. Each day a car is unused costs you $5 per car. Your firm initially has 4 cars.
Conduct a 10-day simulation of this business using Row #1 below for demand and Row #2 below for rental length.
Row #1:
|
.257
|
.887
|
.037
|
.661
|
.036
|
.173
|
.634
|
.818
|
.932
|
.069
|
Row #2:
|
.446
|
.465
|
.069
|
.457
|
.283
|
.525
|
.064
|
.503
|
.373
|
.751
|
You find out that your firm can obtain another car for $200 for 10 days. Should you take the extra car?
Setting up random number and vlookup as well as a detailed solution to the above questions.