Sheet 2

Manually solve the following simulation problem

Profit = Revenue - Cost

Cost is a parameter (constant) .

Cost = 1,000,000 LE

Revenue = Price * Demand

Price is a probabilistic input that follows a continuous uniform distribution ranging from 8.5 LE to 9.5 LE.

Demand is also a probabilistic input that follows the discrete probability distribution given below

Demand Prob.

120,000 0.3

110,000 0.4

100,000 0.3

N.B. run 20 trials

To generate random samples of Price use the following random numbers

0.6557 0.0357 0.8491 0.9340 0.6787 0.7577 0.7431

0.3922 0.6555 0.1712 0.7060 0.0318 0.2769 0.0462

0.0971 0.8235 0.6948 0.3171 0.9502 0.0344

To generate random samples of Demand use the following random numbers

0.4387 0.3816 0.7655 0.7952 0.1869 0.4898 0.4456

0.6463 0.7094 0.7547 0.2760 0.6797 0.6551 0.1626

0.1190 0.4984 0.9597 0.3404 0.5853 0.2238

Required:

a- Compute the minimum value of Profit

b- Compute the maximum value of Profit

c- Compute the average value of Profit

d- Compute the standard deviation of Profit.

e- Compute the median of Profit.

f- Compute the 25th, 50th, 75th percentiles of Profit.

g- Determine the probability of loss.

h- Divide the range (based on your answers in a & b) into 10 equal intervals; then compute the frequency in each interval. Show your answer both as a table & a histogram.

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Each student must submit the answer of sheet 2.

The deadline is Friday 19th of March 2010.

You send your answer as an attached pdf file to the following email:

sheet2@ymail.com

Recall to put your name and ID no. in the first page of the pdf file.

N.B. To convert any document into a pdf file you can use the following free SW:

http://www.cutepdf.com/download/CuteWriter.exe