Problem 1

The school cafeteria has decided to make 30 roasted chickens for the lunch rush. The cafeteria determined

that daily demand will follow the distribution shown in the following table:

Daily Demand Probability

15 0.08

20 0.12

25 0.25

30 0.21

35 0.20

40 0.14

Each chicken costs $7.50 to make and can be sold for $15. It is possible for the cafeteria to sell any unsold

chickens for $5 the next day.

a. Simulate one month (30 days) of operation to calculate the cateria's total monthly roasted

chicken profit. Replicate this calculation 20 times to compute the average total monthly

profit.

b. The cafeteria would like to verify the profitability of making 20, 25, 30, or 35 chickens

during the lunch rush. Which quantity would you recommend? Why?