A tee shirt supplier for the NCAA football championship game is deciding how many tee shirts to order. He can only order once for the entire tournament. For the first week, each tee shirt sells for 29.50 and costs 7.50. What he doesn't sell in the first week he tries to sell in the next 2 weeks. During this time the tee shirts will sell for 14.00. What he has left from this period of time will sell for $3.98 in a foreign market. In thousands, the demand for the first week is as follows:
demand quantity
.4 13000
.3 14000
.2 15000
.1 16000
the demand for the following 2 weeks is as follows:
demand quantity
.3 4000
.3 4500
.2 5000
.1 5500
.1 6000
a. Using a simulation of 25 random numbers . Find average profits for order quantities of interest. Investigate in intervals of 500.
b. repeat "the 25 times simulation" a 100 times for the top three order quantites using a data table
C. For the optimal order quantity(both A and B), find a 95% confidence interval for the expected profit.
d. Print out a histogram for the best order quantity based on the 100 simulation. Comment on this histogram.