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Q1) Paymore Rental Car Agency rents cars in small town. It wishes to find out how many rental cars it must maintain. Based on market projections and historical data, manager has found out probability distributions for number of rentals per day and rental duration (in days only) as given in the following tables:
Number of Customers/Day
Probability
0
0.2
1
2
0.5
3
0.1
Rental Duration (days)
0.3
0.4
4
5
Draw a simulation experiment for car agency and simulate using fleet of four rental cars for 10 days.
Calculate the probability that agency will not have a car available upon demand.
Must the agency expand its fleet? Describe how a simulation experiment could be designed to find out optimal fleet size for payment agency.
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