What will be dougs mean profit from selling the tickets

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Reference no: EM13224626

Doug is a ticket scalper. He buys tickets for the Metropolitan Opera Company performances in New York City before the beginning of the season for $75 per ticket. Since the performances always sell out, Doug is able to sell the tickets for $125 per ticket on the day of the performance. Tickets Doug is unable to sell on the day of the performance have no value. Based on past experience Doug believes that the number of tickets sold will be between 18 and 32 with a mean of 23. (a) Suppose that Doug buys 25 tickets for each game. Build a spreadsheet to implement a simulation of Doug's business model. Use Analytical Solver Platform to perform 1000 trials of the simulation. What will be Doug's mean profit from selling the tickets? What is the probability that Doug will make at least $0 profit? (b) Generate a Decision Table to consider possible quantities of tickets to purchase between 18 and 32. Which purchase quantity maximizes Doug's mean profit?

Reference no: EM13224626

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