This homework will involve modifying the Mathematica code fo

This homework will involve modifying the Mathematica code for Monte Carlo simulations of store inventories and sales. The idea of this assignment is to take a simple model and to incrementally make it better by adding

features. The idea of this assignment is to take a simple model and to incrementally make it better by adding

features. Format them nicely by using sectioning for eachproblem and using text cells to add commentary in answering the questions posed below.

1. Modify the existing methods so that the each simulation can be run many times (call this number of times numSim)and have the program report the average results taken over all simulations.

2. Assuming a prot of $10 is made for each item sold, a loss of $2 is incurred for every lost sale, and a loss of $0.50 per day per number of items in stock greater than 2, modify the existing code for both methods to report the net prot (or loss) at the end of the simulation.

Solution

Running a Monte Carlo Simulation

A Monte Carlo simulation calculates the same model many many times, and tries to generate useful information from the results. To run a Monte Carlo simulation, select \"Monte Carlo\" -> \"Run Monte Carlo Simulation