Jessica William, manager of kitchen appliances for the Midtown Department Store, feels that her inventory levels of stoves have been running higher than necessary. Before revising the inventory policy for stoves, she records the number sold each day over a period of 25 days, as summarized below.
2 stoves in 4 days
3 stoves in 7 days
4 stoves in 8 days
5 stoves in 5 days
6 stoves in 1 day
a) Use these data to estimate the probability distribution of daily sales.
b) Calculate the mean of the distribution obtained in part a.
c) Use the random numbers 0.3544, .08766, and .05478 to simulate daily sales over three days.
d) Compare the average with the mean obtained in part b.
e) Formulate a spreadsheet model for performing a computer simulation of the daily sales. Perform 250 replications and obtain the average of the sales over the replications.