In August 2017, a car dealer is trying to determine how many 2018 cars to order. Each car ordered in August 2017 costs $16,000. The demand for the dealer's 2018 models has the probability distribution shown in the table below. Each car sells for $21,000. If the demand for 2018 cars exceeds the number of cars ordered in August 2017, the dealer must reorder at a cost of $18,000 per car. Excess cars can be disposed of at $13,000 per car.
-(A) Use simulation to determine how many cars the dealer should order in August, 2017 to maximize his expected profit.
(B) For the optimal order quantity, find a 95% confidence interval for the expected profit.
(C) Why is it important to develop the confidence interval in (B)?
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