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Historical data indicate that a student's income for any month of school from work, parents, scholarships,and loans is consistent with the following probability distribution :
Income Probability
750 0.20
950 0.36
1150 0.30
1350 0.14
expenses for the same student are believed to be consistent with the following probability distribution
expense probability
900 0.40
1000 0.25
1100 0.20
1200 0.15
1. Assuming the students begins the school year with a balance of 1200, use excel and RSP to stimulate 9 months of activity and to predict the position of the strudent at the end of the year.
2. Redo the problem if the expenses are believed to be normally distributed with a mean of$ 1026and a standard deviation of 191.36. How does this change the average cash position of the student compared to what you found in the problem ?
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