Question: Q 4 . solve using excel and provide screenshots Young entrepreneur Susie Perez has launched a business venture in which Susie uses stories submitted by

Q4.solve using excel and provide screenshots
Young entrepreneur Susie Perez has launched a business venture in which Susie uses stories submitted by university students as the basis for comics in a monthly anime-style magazine. Based on market research, Susie estimates that average monthly demand will be 500 copies. Susie has decided to model monthly demand as normal random variable with a mean of 500 and a standard deviation of 300. Susie must pay a publishing company $3.75 for each copy of the comic printed. Susie then sells the magazine for $5 each. Rather than having a store-front, Susie sells the magazines through a group of student vendors who sell the comics out of their backpacks while on campus. Susie pays a student vendor $0.35 for each magazine sold. Susie only sells each issue for one month, and then a new issue is sold. However, the publishing company has agreed to buy back any unsold copies at the end of each month for $2.25. Construct a simulation model that computes Susie's profit. a. As Susie validates the simulation model you have constructed, Susie observes that when using a normal distribution with a mean of 500 and a standard deviation of 300 to model demand, negative values of demand are often generated. How can you modify the simulation model to address this issue? b. Based on the simulation model that incorporates a remedy for the validation issue observed in part (a), what is the estimate of the average profit if Susie sets the order quantity to 1,200? What is the 95% confidence interval on this estimate of average profit? c. For an order quantity of 1,200 copies, what is the profit value such that 2.5% of the profit outcomes are smaller than this value? What is the profit value such that 2.5% of the profit outcomes are larger than this value? Why doesn't this range correspond to the 95% confidence interval in part (b)?

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