Problem #1:  Every home football game for the past eight years at Eastern State University has been sold out. The revenues from ticket sales are significant, but the sale of food, beverages, and souvenirs has contributed greatly to the overall profitability of the football program. One particular souvenir is the football program for each game. The number of programs sold at each game is described by the following probability distribution:

NUMBER (IN 100s) OF

PROGRAMS SOLD              PROBABILITY

23                                            0.15

24                                            0.22

25                                            0.24

26                                            0.21

27                                            0.18

Historically, Eastern has never sold fewer than 2,300 programs or more than 2,700 programs at one game. Each program costs $0.80 to produce and sells for $2.00. Any programs that are not sold are donated to a recycling center and do not produce any revenue.

(a) Simulate the sales of programs at 10 football games. Use the last column in the random number table (Table 14.4) and begin at the top of the column.

(b) If the university decided to print 2,500 programs for each game, what would the average profits be for the 10 games simulated in part (a)?

(c) If the university decided to print 2,600 programs for each game, what would the average profits be for the 10 games simulated in part (a)?

Problem #2:  Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 14.6 we describe the simulation of 15 generator breakdowns and the repair times required when one repairperson is on duty per shift. The total simulated maintenance cost of the current system is $4,320. Robbins would now like to examine the relative cost-effectiveness of adding one more worker per shift. The new repairperson would be paid $30 per hour, the same rate as the first is paid. The cost per breakdown hour is still $75. Robbins makes one vital assumption as she begins-that repair times with two workers will be exactly one-half the times required with only one repairperson on duty per shift. Table 14.13 can then be restated as follows:

REPAIR TIME REQUIRED (HOURS)       PROBABILITY

0.5                                                                   0.28

1                                                                      0.52

1.5                                                                   0.20

                                                                        1.00

(a) Simulate this proposed maintenance system change over a 15-generator breakdown period. Select the random numbers needed for time between breakdowns from the second-from-the bottom row of Table 14.4 (beginning with the digits 69). Select random numbers for generator repair times from the last row of the table (beginning with 37).

(b) Should Three Hills add a second repair person each shift?