The Wells Fargo branch in Portland must keep enough money on hand to satisfy customers’ cash demands. Suppose that the daily demand for cash at this branch follows a normal distribution with means and standard deviation summarized as follows (in $1,000s):

The bank orders cash once a week that arrives in an armored truck on Sunday night to replenish the branch’s cash reserves for the next week.

Answer these questions using excel and analytic solver.

	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Mean	175	120	90	60	120	140	65
STD	26	18	13	9	18	21	9

A. Suppose the branch manager decides to order $800,000 to start each week. Create a spreadsheet simulation model to track the daily ending balances in the week.

B. What is the probability that the bank will run out of money during the week?

C.How much money should the branch manager order to ensure that the probability of running out of cash during the week is no more than 1%

Answer rating: 100% (QA)

1 Here we have 200 samples each of size 40 and we have 40 data values t... View the full answer