Simulation Quiz

Simulation Quiz

Joe Smith is a handyman who owns his own plumbing business. In a typical month, the number

of service calls that he gets varies according to the following discrete distribution:

Number of Calls 15 16 17 18 19

Probability 0.3 0.3 0.2 0.1 0.1

His revenues per service call are normally distributed with a mean of $100 and a standard

deviation of $20.

His monthly expenses can range between a minimum of $1000 and a maximum of $1500, so you

may assume that monthly expenses are uniformly distributed between $1000 and $1500.

Use 1000 replications to estimate the average profit per month that Joe Smith makes