Supermarket customers load their carts with goods totaling


Supermarket customers load their carts with goods totaling between $5 and $200, uniformly (and continuously) distributed; call this the raw order amount. Assume that customers purchase independently of each other. At checkout, 63% of customers have a loyalty card that gives them a 4% discount of their raw order amount. Also at checkout, 18% of customers have coupons that give them 7% off their raw order amount. These two discounts occur independently of one another, and a given customer could have one of them, both of them, or neither of them, to get their net order amount, the amount they actually end up paying. Construct a spreadsheet simulation to simulate 100 customers and collect statistics on the net order amount; these statistics should include the average, standard deviation, minimum, and maximum. You should also form a 95% CI for the mean raw order amount, the mean net order amount, the mean customer loyalty discount, and the mean coupon discount.

(Hint: Use the Excel IF function in combination with the RAND() function to determine whether or not customers get discounts. Also, the number of people who have each type of discount will change when you hit F9 so you should find a command that allows you to account for this in your 95% CI.) 

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Financial Econometrics: Supermarket customers load their carts with goods totaling
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