An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 5

To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Attendance is limited to 25 individuals per seminar. Each seminar costs Gustin $3500, and the average first-year commission each new account opened is $5000. Historical data collected over the past four years show that the number of new accounts opened at a seminar varies from no accounts opened to a maximum of six accounts opened according to the following probability distribution:
a. Set up intervals of random numbers that can be used to simulate the number of new accounts opened at a seminor.
b. Using the first 10 random number in column 9 of Table 12.2, simulate the number of new accounts opened for 10 seminors.
c. Would you recommend that Gustin continue running the seminars?