Question

Please show how you did this in excel.

:13-19 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 contrib- uted greatly to the overall profitability of the football program. One particular souvenir is the football pro- gram for each game. The number of programs sold at each game is described by the following probabil- ity distribution: NUMBER (IN 100s) OF PROGRAMS SOLD PROBABILITY 23 0.15 0.22 24 0.24 25 0.21 26 0.18 27 Historically, Eastern has never sold fewer than 2,300 programs or n 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 num- ber table (Table 13.4) 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)? more than 2,700 programs at one game. TABLE 13.4 52 06 50 57 88 53 30 10 47 99 37 66 91 35 32 00 84 07 Table of Random Numbers 37 63 28 60 02 74 35 24 03 29 60 74 85 90 73 59 55 17 82 57 25 77 68 28 05 94 03 11 27 79 90 87 92 41 09 36 69 02 36 97 71 72 49 49 71 99 32 10 75 21 95 90 94 38 98 94 90 36 06 78 23 85 25 73 69 34 85 76 67 89 29 21 96 52 57 95 62 87 49 56 59 23 78 71 72 90 57 01 98 31 33 69 27 93 50 44 51 21 11 60 95 89 68 48 17 89 34 09 50 33 50 95 13 44 34 62 64 39 55 29 30 64 49 44 30 16 88 32 18 50 62 57 34 56 62 31 15 40 90 34 51 95 26 14 90 36 24 35 85 01 55 85 30 69 82 51 74 30 36 92 64 09 50 48 61 18 85 23 08 54 17 12 80 69 24 84 92 16 49 59 27 8 21 62 69 64 48 31 12 73 02 68 00 16 16 13 85 46 32 13 49 66 62 74 41 86 92 45 14 46 98 98 84 54 33 40 78 82 Y74 97 37 45 31 94 99 42 81 02 01 49 27 64 89 42 27 76 03 33 97 59 66 83 14 74 11 81 72 00 64 61 13 52 74 05 81 82 93 09 96 33 52 78 13 06 28 30 23 94 37 39 87 01 74 11 46 82 59 94 25 34 32 23 17 01 30 34 58 73 72 33 62 13 74 68 22 44 42 09 32 71 59 55 46 79 45 89 80 99 25 77 50 03 32 36 63 65 67 09 98 75 94 19 95 88 22 03 85 60 77 46 63 71 69 44 14 48 69 13 30 50 33 24 72 30 27 50 75 60 08 19 29 36 64 85 72 29 87 05 75 01 87 76 80 45 86 99 02 34 08 86 84 49 24 08 01 86 29 11 26 65 72 85 53 84 49 63 84 63 26 02 75 26 92 62 40 67 51 36 17 02 15 29 52 56 22 62 69 84 12 94 16 43 26 08 51 37 77 13 10 02 18 31 19 32 85 31 94 81 43 31 58 33 Source: Excerpted from A Million Random Digits with 100,000 Normal Deviates (New York: The Free Press, 1955), p. 7 with permission of the RAND Corporation. 8 R 8F

Answer 1

NUMBER (IN 100s) OF CUMULATIVE PROBABILITY PROGRAMS SOLD INTERVAL RANDOM NUMBERS PROBABILITY 23 0.15 0.15 1-15 0.22 16-37 24 0.37 25 0.24 0.61 38-61 0.82 26 0.21 62-82 27 83-100 0.18 1.00 PROBABILITY RANGE NUMBER (IN 100s) OF PROBABILITY PROGRAMS SOLD CUMULATIVE (lower) 23 C 15 15.00 37 24 37.00 61 25 61.00 82 26 82.00 100 27 (A) RANDOM SIMULATED DAY NUMBER DEMAND 7 23 2 60 25 3 77 26 4 49 25 5 76 26 6 95 27 7 51 25 8 16 24 9 14 23 10 85 27 Average 25.1

COST OF GOODS SOLD Part B REVENUE PROFIT 4600 2000 2600 5000 2000 3000 5200 2000 3200 5000 2000 3000 5200 2000 3200 5400 2000 3400 5000 2000 3000 4800 2000 2800 4600 2000 2600 5400 2000 3400 AVERAGE 3020 COST OF Part C PROFIT REVENUE GOODS SOLD 4600 2080 2520 5000 2080 2920 5200 2080 3120 2920 5000 2080 2080 5200 3120 5400 2080 3320 5000 2080 2920 4800 2080 2720 2080 4600 2520 5400 2080 3320 AVERAGE 2940