725 Reality Show 10Fight10 is trying to decide how many 10Fight10 boxing trunks to order for selling in the upcoming Season 2. During Season 2 , each boxing trunks will be sold at the full price of $ 55 . 10Fight101 that the demand at this price will be normally distributed with a mean of 200 and standard deviation of 40 ( rounded to the nearest integer ) . If 10Fight10 orders 200 boxing trunks , the cost will be $ 28 per boxing trunks . Every increment of 50 boxing trunks reduces the unit cost by $ 1.25 . For example , if the order quantity is between 250 and 299 , the each boxing trunks will cost $ 26.75 . After the end of Season 2 , the boxing trunks will be marked down to a discounted - price of $ 20 per pair . Historically , demand for discounted - price items has followed a normal distribution with a mean equal to half of the actual full - price demand and a standard deviation equal to 20 % of the discounted - price mean demand . For example , if the full - price demand turned out to be 200 , the discounted - price demand would normally distributed with a mean of 0.5-200 = 100 and a standard deviation of 0.2 ( 100 ) = 20 . Build and run a simulation model with 1,000 iterations to determine how many boxing trunks should Reality Show 10Fight10 order to maximize its expected profit ? You can assume that any unsold boxing trunks at the marked - down price has no value

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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725 Reality Show 10Fight10 is trying to decide how many 10Fight10 boxing trunks to order for selling in the upcoming Season 2. During Season 2 , each boxing trunks will be sold at the full price of $ 55 . 10Fight101 that the demand at this price will be normally distributed with a mean of 200 and standard deviation of 40 ( rounded to the nearest integer ) . If 10Fight10 orders 200 boxing trunks , the cost will be $ 28 per boxing trunks . Every increment of 50 boxing trunks reduces the unit cost by $ 1.25 . For example , if the order quantity is between 250 and 299 , the each boxing trunks will cost $ 26.75 . After the end of Season 2 , the boxing trunks will be marked down to a discounted - price of $ 20 per pair . Historically , demand for discounted - price items has followed a normal distribution with a mean equal to half of the actual full - price demand and a standard deviation equal to 20 % of the discounted - price mean demand . For example , if the full - price demand turned out to be 200 , the discounted - price demand would normally distributed with a mean of 0.5-200 = 100 and a standard deviation of 0.2 ( 100 ) = 20 . Build and run a simulation model with 1,000 iterations to determine how many boxing trunks should Reality Show 10Fight10 order to maximize its expected profit ? You can assume that any unsold boxing trunks at the marked - down price has no value .

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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