Assume that a customer purchase a new car every 5 years, for a total of 10 cars through her lifetime. Let's use Ford as a example. The customer starts out buying a Ford car as her first car. She will keep buying Ford cars as long as she is satisfied with them. However, if she is not satisfied with her current Ford car, she will purchase another brand next time and never return to Ford in her lifetime. Question: What is the expected lifetime profit of a customer who starts out buying a Ford car? Assume that the profit of each car is $4,000, and the probability that the customer will be satisfied with her current Ford car is always 80%. Please use simulation, i.e. using a combination of control flows, to calculate the number. Write a function with the following two inputs: 1) the profit of each car, and 2) the probability that the customer will be satisfied with her current Ford car. The output of the function will be the lifetime profit of a customer given these two inputs. Basically, you will only need to modify your code in Question (1) a bit and wrap everything in a function.

Assume that a customer purchase a new car every 5 years, for a total of 10 cars through her lifetime. Let's use Ford as a example. The customer starts out buying a Ford car as her first car. She will keep buying Ford cars as long as she is satisfied with them. However, if she is not satisfied with her current Ford car, she will purchase another brand next time and never return to Ford in her lifetime. Question: What is the expected lifetime profit of a customer who starts out buying a Ford car? Assume that the profit of each car is $4,000, and the probability that the customer will be satisfied with her current Ford car is always 80%. Please use simulation, i.e. using a combination of control flows, to calculate the number. Write a function with the following two inputs: 1) the profit of each car, and 2) the probability that the customer will be satisfied with her current Ford car. The output of the function will be the lifetime profit of a customer given these two inputs. Basically, you will only need to modify your code in Question (1) a bit and wrap everything in a function.

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter16: Probabilistic Inventory Models

Section: Chapter Questions

Problem 2RP

See similar textbooks

Similar questions

Let's say we have the attached table : Give an employee 8% salary increases if he or she is hired before 1981 and has salary less than 1500
In addition to being a Computer Scientist, you have a (side-hustle) business where you sell flower bouquets.Each of your flower bouquets consists of a certain number of red roses, with a minimum of 1 and a maximum of 6. This is the profit you make from each of your bouquets, which is a function of the number of red roses in that bouquet. You have 6 roses with you, and now you need to decide what bouquets to make in order to maximize your profit. I have presented this data as a set of tuples below. (Roses, Prices) = {(1,$3),(2,$5), (3, $9), (4,$13), (5,$14), (6,$18)} For example, if you make two 2-rose bouquets and two 1-rose bouquets (2+2+1+1=6), then your profit is 5+5+3+3=16 dollars. Note- for this problem you can have multiple rose bouquets in each category. However, if you make a 5-rose bouquet and a 1-rose bouquet (5+1=6), then your profit is 14+3=17 dollars. Determine the maximum profit you can make.
Introduction to Quantitative Methods SEE ATTACHED PHOTO FOR THE PROBLEM
Suppose you are working as a data scientist for an online retailer, and you are tasked with optimizing the pricing strategy for a new product. The product is currently priced at $50, but you want to determine whether a higher or lower price would result in greater profit. You estimate that the demand for the product can be modeled using a normal distribution with a mean of 100 units per day and a standard deviation of 20 units per day. The cost of producing each unit is $30, and the retailer's profit is the difference between the revenue and the cost. The retailer incurs a fixed cost of $1000 per day for operating expenses, regardless of the number of units sold. Use simulation to answer to the question.
urgent
Medical records show a sample population of 1000 people, of those 1000 people, 98% do not have a terminal illness and 2% do have a terminal illness. A Health Insurance company would like try out a new cheaper test for terminal illness. Their results show that 98% of the people that do have a terminal illness test positive, while 1% of the people who do not have a terminal illness test positive for one. A corporation known as Ken’s Kids is concerned about patients that are slipping through the cracks with this new medical testing. If the new medical testing is adopted, what % of the people will be misdiagnosed as not having a terminal illness, but really have one? Assuming a population of 200 million people, how many people that have a terminal illness, given this new testing will never know that they do? (Please show all work , and have a legend for symbols).
Suppose you have to select one project partner from a set of four classmates, who have different GPAs. Assume you do not know any student’s GPA in advance but can get to know it after you have picked a student from that group (a) Suppose you pick one of the four students at random and accept that student as your project partner. What is the probability that your partner is the one with the highest GPA? (b) Suppose you decide to reject the first student and to then accept the next student if and only if that student has a higher GPA. Note that you MUST have a partner, so if the first three are rejected by you, then you have to accept the fourth student. What is the probability that your partner will be the one with the highest GPA.
Depending on the cause of death, racial/ethnic and gender disparities exist on years of potential life lost in the United States. Years of Potential Life Lost (YPLL) can be defined as the number of years lost when death occurs before one’s life expectancy. For this assignment, life expectancy will be set for everyone at 75. For YPLL, a death of a very young person is weighted more than a death of a very old person (McKenzie, Pinger, & Seabert, 2018). AS Instructions: Investigate one cause of death (infant mortality, homicide, suicide, unintentional injuries (such as car accidents, drowning, falling, etc.), pregnancy complications, COVID-19, etc.) in the United States and research the YPLL for racial/ethnic groups and genders. Summarize your findings in your paper and discuss how calculating YPLL can change the way we think about that particular cause of death differently.
GENERATE THE DECISION VARIABLE SOLUTION AND GENERATE AN ANSWER REPORT 2. During the winter WeeMow Lawn Service contracts with customers for cutting lawns starting in the spring. WeeMow provides service to residential and commercial customers. The service has identified 50 possible residential customers and 15 potential commercial customers it has contacted. WeeMow services a customer once every 2 weeks during the growing season. A residential lawn on average takes 1.2 hours to cut, and a commercial property requires 5 hours to cut; the service's available work time is 8 hours, 6 days per week. The profit for a residential lawn is $23, and the profit for a commercial property is $61. The service has established a weekly budget of $350 for management, gas, and other materials, plus equipment repair. A residential lawn averages $12 in management, gas, material, and repair costs, and a commercial property averages $20 in costs. WeeMow wants to know how many residential and commercial jobs…
Depending on the cause of death, racial/ethnic and gender disparities exist on years of potential life lost in the United States. Years of Potential Life Lost (YPLL) can be defined as the number of years lost when death occurs before one’s life expectancy. For this assignment, life expectancy will be set for everyone at 75. For YPLL, a death of a very young person is weighted more than a death of a very old person (Seabert, McKenzie, & Pinger, 2022). AS Instructions: Investigate one cause of death (infant mortality, homicide, suicide, unintentional injuries (such as car accidents, drowning, falling, etc.), pregnancy complications, COVID-19, etc.) in the United States and research the YPLL for racial/ethnic groups and genders. Summarize your findings in your paper and discuss how calculating YPLL can change the way we think about that particular cause of death differently. Provide factual documentation that reinforces your findings from at least three peer reviewed sources…
In a database describing 100 examples of printer failures, 75 are hardware failures and 25 are driver failures. Of the hardware failures, 15 had Windows. Of the driver failures, 15 had Windows. If the probability of a driver failure is 25/100, the probability that the system where a failure occurred was Windows is 30/100 and the probability of a failure in the Windows system given it has been caused by the driver is 15/25, what is the probability that a failure has been caused by a driver knowing that the system is Windows?
Electronic Spreadsheet Applications Compare What-If Analysis using Trial and Error and Goal Seek to the given scenario: Let's say a student is enrolled in an online class at a learning institution for a semester. His overall average grade stands at 43% in the course (Term Grade is 45%, Midterm Grade is 65%, Class Participation is 62% and Final Exam is 0%). Unfortunately, he missed his Final Exam and was given 0%. However, he has the opportunity to redo his Final Exam and needs at least an overall average of 60% to pass the course. How can you use Trial and Error and Goal Seek to find out what is the lowest grade he needs on the Final Exam to pass the class? Which method worked best for you and why?