Answer as soon as possible 1. Your friend is conducting a simulation experiment to test the effect
Question:
Answer as soon as possible
1. Your friend is conducting a simulation experiment to test the effect of different demand distributions on the average profit. He finds that the average profit over 100 replications for demand distribution A is 7.48, for demand distribution B is 8.26. He claims that distribution A is clearly worse than B, based on the average profit. What concerns might a statistically literate person have with his statement? you developed a problem for the case where 40% of customers make a purchase, while 60% of customers ask questions before purchasing. You were asked to run 200 replications.
2. Why was it necessary to generate a customer type ("buy" or "ask and buy") for each individual customer (replication), rather than saying 80 customers ( = 40% of 200) only purchased and 120 customers ( = 60% of 200) asked and purchased?