A salesperson in a large bicycle shop is paid a bonus if he

A salesperson in a large bicycle shop is paid a bonus if he sells more than 4 bicycles a day. The probability of selling more than 4 bicycles a day is only 0.40. If the number of bicycles sold is greater than 4. the distribution of sales is as shown in the table below. The shop has four different models of bicycles. The amount of the bonus paid out varies by type. The bonus for model A is S10: 40% of the bicycles sold arc of this type. Model H accounts for 35% of the sales and pays a bonus of S15. Model C has a bonus rating of $20 and makes up 20% of the sales. Finally, model D pays a bonus of $25 for cash sale but accounts for only 5% of the sales. Develop a simulation model to calculate the bonus a salesperson can expect in a day. Also report a 95% confidence interval for the mean bonus amount.

Solution

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