Every home football game for the past 8 years at Southwestern University has been sold out. The
Question:
Every home football game for the past 8 years at Southwestern University has been sold out. The revenues from ticket sales are significant, but the sale of food, beverages, and souvenirs has contributed greatly to the overall profitability of the football program. One particular souvenir is the football program of each game. The number of programs sold at each game is is described by the probability distribution given in the table. Each program costs $0.80 to produce and sell for $2.00. Any programs that are not sold are recycled and do not produce any revenue.
sale probability
2300 0.15
2400 0.22
2500 0.24
2600 0.21
2700 0.18
( a). Simulate the sales of programs at 25 football games
( b). If the University decided to print 2,500/2600 programs for each game, what would the average profits be for the 25 games that were simulated?
Operations Management Sustainability And Supply Chain Management
ISBN: 9780135173626
13th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson