Simulatation


Simulate the decision situation described in Problem 16(a) at the end of Chapter 12 for 20 weeks, and recommend the best decision.

Reference Problem 16(a) in Chapter 12
: A concessions manager at the Tech versus A&M football game must decide whether to have the vendors sell sun visors or umbrellas. There is a 30% chance of rain, a 15% chance of overcast skies, and a 55% chance of sunshine, according to the weather forecast in College Junction, where the game is to be held. The manager estimates that the following profits will result from each decision, given each set of weather conditions: Weather Conditions Decision Rain Overcast Sunshine .30 .15 .55 Sun visors $-500 $-200 $1,500 Umbrellas 2,000 0 -900 a. Compute the expected value for each decision and select the best one.

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Advanced Statistics: Simulatation
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