Consider the following frequency of demand and random numbers:
$$\begin{array}{l}
\begin{array} { c c }
&\text { Relative }\
\text { Demand } & \text { Frequency } \
\hline 0 & 0.15 \
1 & 0.30 \
2 & 0.25 \
3 & 0.15 \
4 & 0.15
\end{array}
\end{array}$$ Random numbers: 0.13, 0.81, 0.53.
-If the simulation begins with the third random number, the simulated value for demand would be:
A) 0
B) 1
C) 2
D) 3
E) 4

Question

Consider the following frequency of demand and random numbers:
 $$\begin{array}{l}
\begin{array} { c c } 
&\text { Relative }\
\text { Demand } & \text { Frequency } \
\hline 0 & 0.15 \
1 & 0.30 \
2 & 0.25 \
3 & 0.15 \
4 & 0.15
\end{array}
\end{array}$$ Random numbers: 0.13, 0.81, 0.53.
-If the simulation begins with the third random number, the simulated value for demand would be:
A) 0
B) 1
C) 2
D) 3
E) 4

Quizplus · Accepted Answer

To simulate demand, we first convert the relative frequencies into cumulative frequencies: 0.15 (for demand 0), 0.45 (0 + 0.30 for demand 1), 0.70 (0.45 + 0.25 for demand 2), 0.85 (0.70 + 0.15 for demand 3), and 1.00 (0.85 + 0.15 for demand 4). The third random number is 0.53, which falls between 0.45 and 0.70, corresponding to a demand of 2.

Consider the Following Frequency of Demand and Random Numbers Random Numbers: 0