Lionel's life jacket rentals leases life jackets each day from a supplier and rents them to customers who use them when they raft. Each day, Lionel leases 30 life jacket from his supplier, at a cost of $4 per life jacket. He rents them to customers at $15 per day. Rental demand follows the normal distribution with a mean of 30 life jackets and a standard deviation of 6 life jackets. (in the model use intergers for all demands)
a) Stimulate the leasing policy for a month (30 days) days of operation to calculate monthly profit. Replicate this calculation N times. What is the monthly average profit?
b) Lionel would like to evaluate the average monthly profit if he leases 25, 30, 35 and 40 life jackets. What is your recommendation? Why?
Please show all steps on excel and show formulas typed into excel