The historical data shows that the daily sales can be 40, 50, 60, 70 and 80 items with probabilities of 0.1, 0.3, 0.3, 0.2, and 0.1 respectively. You will receive a $2.00 commission on each unit sold. Simulate sales for 10 periods using random numbers from column 1 and calculate the average daily commission earned by you. You have been offered a flat payment of $120 per day instead of the commission for the next two years. Should you accept it? Why?

Answer rating: 100% (QA)

From the simulation carried out the average occurrence value indicated is 62 ... View the full answer