Question 3: (a) Suppose the retail company Two for One has two locations. At location 1, there is a 35% chance for posit

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Question 3 A Suppose The Retail Company Two For One Has Two Locations At Location 1 There Is A 35 Chance For Posit 1 (125.67 KiB) Viewed 74 times

Question 3: (a) Suppose the retail company Two for One has two locations. At location 1, there is a 35% chance for positive profit, a 35% for zero profit, and a 30% chance for negative profit on any day. At location 2, there is a 55% chance for profit, a 30% chance for zero profit, and a 15% chance for negative profit. We wish to simulate the chance of profit for Two for One. In the simulation, profit1 = 1 when location 1 posts a positive profit, profit1 = 0 when location 1 posts no profit, and profit1 = -1 when location 1 posts a negative profit. The same holds true for location 2 and its profit2 variable. data Questions, numprofits = 0; do i = 1 to 3; ui - rand("uniform"); if ul else if else 1 then profiti = -1; < ui< then profiti -e; <ul < 1 then profiti. 1; u2 = rand("uniform"); if u2 else if else 14 then profit2 = -1; < u2 then profit2 = 0; < u2 < 1 then profit2 = 1; totalProfit = profiti + profit2; if totalProfit > then nunprofits = nur Profits + 1; 2 end; Suppose that for the following u1 and u2 values are generated within this simulation: 1 3 4 i u1 0.796 0.729 2 0.335 0.331 0.663 0.894 5 0.036 0.138 0.337 0.102 u2 Based on these values of u1 and u2 for each of the 5 trials run in the simulation, how many times did location 1 post positive, zero, and negative profits. How many times for location 2? How many times did the two locations post the same type of profit (either both positive, negative, or zero). (b) For the following SAS code, what initial value of the sum variable gives the sum variable a final value of 10 once the 3 iterations of the do-loop are complete? sum = do i = 1 to 3; sum = sum + 1; end;