Joe Smith is a handyman who owns his own plumbing business.In a typical month,the number of service calls that he gets varies according to the following distribution:
$$\begin{array} { | l | c | c | c | c | c | }
\hline \text { Number of Calls } & 15 & 16 & 17 & 18 & 19 \
\hline \text { Probability } & 0.3 & 0.3 & 0.2 & 0.1 & 0.1 \
\hline
\end{array}$$
His revenues per service call are normally distributed with a mean of $100 and a standard deviation of $20.His monthly expenses can range between a minimum of $1000 and a maximum of $1500,where all values between the minimum and maximum occur with equal likelihood.
a.Use Crystal Ball to simulate Mr.Smith's monthly profits.Run 1000 replications of the model.
b.What is the average monthly profit?

Question

Joe Smith is a handyman who owns his own plumbing business.In a typical month,the number of service calls that he gets varies according to the following distribution:
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline \text { Number of Calls } & 15 & 16 & 17 & 18 & 19 \
\hline \text { Probability } & 0.3 & 0.3 & 0.2 & 0.1 & 0.1 \
\hline
\end{array}$$ 
His revenues per service call are normally distributed with a mean of $100 and a standard deviation of $20.His monthly expenses can range between a minimum of $1000 and a maximum of $1500,where all values between the minimum and maximum occur with equal likelihood.
a.Use Crystal Ball to simulate Mr.Smith's monthly profits.Run 1000 replications of the model.
b.What is the average monthly profit?

Quizplus · Accepted Answer

The Answer of Joe Smith is a handyman who owns his own plumbing business.In a typical month,the number of service calls that he gets varies according to the following distribution:
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline \text { Number of Calls } & 15 & 16 & 17 & 18 & 19 \
\hline \text { Probability } & 0.3 & 0.3 & 0.2 & 0.1 & 0.1 \
\hline
\end{array}$$ 
His revenues per service call are normally distributed with a mean of $100 and a standard deviation of $20.His monthly expenses can range between a minimum of $1000 and a maximum of $1500,where all values between the minimum and maximum occur with equal likelihood.
a.Use Crystal Ball to simulate Mr.Smith's monthly profits.Run 1000 replications of the model.
b.What is the average monthly profit?

Joe Smith Is a Handyman Who Owns His Own Plumbing