The historical data shows that the daily sales can be 40, 50, 60, 70 and 80 items
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Question:
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?
Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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