Question

A gasoline mini-mart orders 50 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The gasoline mini-mart purchases the magazines for $1.50 and sells them for $4.00. Any magazines left over at the end of the month are donated to hospitals and other healthcare facilities. The magazine publisher estimates that (if enough magazines were stocked) demand would be normally distributed with mean 50 and standard deviation 10. Run a 1000-trial simulation using the attached model. Set the Sim. Random Seed to 5 and the Sampling Method to Monte Carlo.

Using the results from your 1000-trial simulation, what is the mean profit when the gasoline mini-mart stocks 50 magazines? (Select the closest value)

Find a 95% confidence interval for the mean profit. A 95% confidence interval for the mean profit would be [$  ,$  ] (round to two decimal places).

How likely is the gasoline mini-mart to observe a profit greater than $110? (Select the closest value.)

Using the results from your 1000-trial simulation, what is the probability that the gasoline mini-mart will have a profit less than $100 when it stocks 50 magazines? (Select the closest value)

What quantity of stocked magazines (purchased quantity) yields the highest average profit?

Answer 1