Colin sells pretzels at the local high school basketball games. For an upcoming game, Colin must decide how many pretzel

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answerhappygod
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Colin sells pretzels at the local high school basketball games. For an upcoming game, Colin must decide how many pretzel

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Colin sells pretzels at the local high school basketball games. For an upcoming game, Colin must decide
how many pretzels to order (170, 190, or 210), at a cost of $0.50 each. Colin sells pretzels for $1.50
each. However, any unsold pretzels must be thrown away. If the game is interesting, Colin thinks that
fewer people will visit his stand. In such a case, Colin estimates that demand will be normally
distributed, with a mean of 140 and a standard deviation of 20. However, if the game is a blowout, he
expects more people to visit the stand. Demand in this case follows a discrete uniform distribution
between 180 and 200. Based on his familiarity with the two teams, he estimates that there is only a
40% chance that the game will be a blowout.
Set up a simulation model and replicate it N=500 times
for each order size to determine Colin's expected profit and expected percentage of unsold pretzels.
What do you recommend that Colin do?
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