Solve the following problem:
Q: Every home football game for the past eight years at Eastern 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 Probability
23 0.15
24 0.22
25 0.24
26 0.21
27 0.18
Historically, Eastern has never sold fewer than 2,300 programs or more than 2,700 programs at one game. Each program costs $0.80 to produce and sells for $2.00. 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 random number table 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)?
| Number (in 100s) of Programs Sold |
Probability |
Cumulative Probability |
Interval of Random Number (range defined by Cumulative Probability) |
Day |
Random Number Selection
(from Table 14.4) |
Demand (100s) - based on selected Random Number |
Part b: Quantity Sold |
Part b: Profit |
Part c: Quantity Sold |
Part c: Profit |
| 23 |
0.15 |
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| 24 |
0.22 |
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| 25 |
0.24 |
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| 26 |
0.21 |
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| 27 |
0.18 |
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