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Distribution for Sales Product

Please explain the steps in details so I can understand how the answers are derived:
A retail store experiences the following probability distribution for sales of a product.
Sales (units) 0 1 2 3 4 5 6
Probability 0.08 0.12 0.28 0.24 0.14 0.10 0.04

a .Set up intervals of random numbers that can be used to simulate sales.

b. Random numbers generated for the first 10 days of a simulation are as follows:
0.4627, 0.8745, 0.4479, 0.6712, .04557, 0.8435, 0.2162, 0.1699, 0.1338, 0.2278
What is the sales value generated for each day?

c.What are the total sales over the 10-day period?

ANSWERS
a. 0.00-0.08, 0.08-0.20, 0.20-0.48, 0.48-0.72, 0.72-0.86, 0.86-0.96, 0.96-1.00
b. 2, 5, 2, 3, 2, 4, 2, 1, 1, 2
c. 24 units

Solution Preview

Hello!
Here are your answers.

Part A
The intervals of random numbers must be generated as follows.

- The first interval goes from 0 to the probability of the first event (in which sales are 0); in this case 0.08. So the first interval is 0 - 0.08. This intervals correspond to the event "Sales = 0 units"
- The second interval goes from the end of the previous interval (0.08) to that value PLUS the probability of the second event (0.12), which is 0.08 + 0.12 = 0.20. So the second interval is 0.08 - 0.20. ...

Solution Summary

This solution contains step-by-step calculations and complete explanations that simulate sales in intervals, calculate sales value per day and also the total sales over a 10-day period.

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