The store manager in a Department Store feels that her inventory levels of kitchen chimneys have been running higher than necessary. She feels the inventory policy needs to be reframed. Before that, she looks at the number sold each day over a period of 60 days, as summarized below. 

 

(a) Use these data to estimate the probability distribution of daily sales.

(b) Calculate the mean of the distribution obtained in part (a).

(c) Describe how uniform random numbers can be used to simulate daily sales.

(d) Formulate a spreadsheet model for performing a simulation of the daily sales. Perform 300 replications and obtain the average of the sales over the 300 simulated days. Compare the average with the mean obtained in part (b).

Transcribed Image Text:

Number sold 1 2 3 4 6. 7 Number of days 2 6. 11 21 10 1 4 Number sold 1 2 3 4 6. 7 Number of days 2 6. 11 21 10 1 4

Answer rating: 100% (QA)

a Probability distribution x 0 1 2 3 4 5 6 7 PX x 260 660 1160 2160 10... View the full answer