A grocery store manager wants to analyze customer spending data by product categories: fresh baked goods, meat

Question:

A grocery store manager wants to analyze customer spending data by product categories: fresh baked goods, meat and dairy, produce, and frozen food. For each shopping trip, about 30% of shoppers purchase baked good items, and the spending in this category tends to follow a uniform distribution between $3 and $19. For the meat and dairy products, 70% of shoppers make regular purchases from this category, and their spending is normally distributed with a mean of $21 and standard deviation of $5.27. Eighty percent of the shoppers spend an average of $15 on produce, and their spending follows a normal distribution with a standard deviation of $2.31. Sixty-five percent of shoppers purchase at least one item from the frozen food aisles; the spending amount in this category follows a uniform distribution between $7.25 and $28.50. On average, approximately 220 customers make a trip to the grocery store each day. Develop a Monte Carlo simulation and risk analysis model to analyze the customer spending and the fluctuation in daily revenue.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Business Analytics

ISBN: 9781265897109

2nd Edition

Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

Question Posted: