A garage band wants to hold a concert. The expected crowd is 3,000. The average expenditure on

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A garage band wants to hold a concert. The expected crowd is 3,000. The average expenditure on concessions is $ 15. Tickets sell for $ 10 each, and the band’s profit is 80% of the gate and concession sales, minus a fixed cost of $ 12,000. Develop a general mathematical model and implement it on a spreadsheet to find their expected profit. Suppose that the expected crowd is normally distributed with a mean of 3,000 and standard deviation of 200. Use the NORM. INV function and a one way data table to conduct a Monte Carlo simulation with 25 trials to find the distribution of the expected profit.

Monte Carlo simulation
Monte Carlo simulation is a technique used to understand the impact of risk and uncertainty in financial, project management, cost, and other forecasting models. A Monte Carlo simulator helps one visualize most or all of the potential outcomes to...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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