Suppose that an electronics store has used historical data to approximate the demand for the newest technology gadget using the discrete probability distribution given below. Demand Probability 2,000 0.15 4,000 0.30 8,000 0.40 10,000 0.15

The gadgets cost the store $150 each and sell for $250 each. The store must pay a recycling fee of $20 for each leftover unit. Assume that the store can only order gadgets in quantities of 2,000, 4,000, 8,000, or 10,000. A. Explain how you plan to formulate this problem as a Monte Carlo simulation implemented on an Excel spreadsheet. Explain all spreadsheet formulas that you plan to use. Specifically make note of what the profit on a sold gadget is and the loss on an unsold gadget. B. Implement the problem on an Excel spreadsheet as defined in Part B. Let each experiment consist of 100 iterations and conduct the experiment 10 times. Attach your spreadsheet simulation to the problem submission. C. Determine how many gadgets should be ordered to get the highest profit. Compute a 95% confidence interval for your choice.