1. Jay’s Appliances sells micro-fridges according to the monthly demand distribution shown in the… 1 answer below »

1. Jay’s Appliances sells micro-fridges according to the monthly demand distribution shown in the table at the top of the next page. Simulate 6 years of demand and compare theoretical and simulated results for the following measures:

(a) Average demand.

(b) Probability that demand will be less than or equal to 30 micro-fridges.

2. Shawn Bishop, a neuroscience PhD student at Clarksville University, has been having problems balancing his checkbook. His monthly income is derived from a graduate research assistantship; however, he also makes extra money in most months by tutoring undergraduates in their introductory neurobiology course. His chances of various income levels are shown here (assume that this income is received at the beginning of each month):

Bishop has expenditures that vary from month to month, and he estimates that they will follow this distribution:

Bishop begins his final year with $1,500 in his checking account. Simulate the cash flow for 12 months and replicate your model N times to identify Bishop’s (a) ending balance at the end of the year and (b) probability that he will have a negative balance in any month.