Question: Question from Monte Carlo methods [Jamar-ks] 4. Consider a. car salesman where the number of cars sold is a homogenous Poisson process with rate A

Question from Monte Carlo methods

Question from Monte Carlo methods [Jamar-ks] 4. Consider a. car salesman where

[Jamar-ks] 4. Consider a. car salesman where the number of cars sold is a homogenous Poisson process with rate A = 120 per year. Suppose that there are t 1- es of cars with prices $20,000, $50,000, and $80,000 and the props 5i"?'E*?"_'S_\"?'?'t\"2929-\"T II, and 0.2, respectively. Let X,- denote the sale price of the ith car, N (t) denote the number of cars sold by time t, and assume independence between the sale prices of the cars and the Poisson process. The total sales by time t is SH) = Eil X, with SQ?) dened to be zero when N(t) = 0. Assume the ability to generate iid uniform(0,1] random variables. Provide an algorithm that simulates sample paths of total sales over a 2-year period. The algorithm should generate sample paths of total sales that increase at the times a car is sold. Do NOT implement the algorithm in Matlab

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