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Question
Down of the Hill is a famous restaurant in Chapel Hill, and it is going to offer a new special meal next week. The restaurant makes a profit of $4 from each special meal sold, and it anticipates that each independent customer has a 0.15 probability of ordering the special meal. According to its ten years of experience, the restaurant expects that the number of customers (this number is an integer) next week roughly follows a triangular distribution with a minimum of 200, a maximum of 500, and a most likely number of 400. Down of the Hill will determine whether to continue offering the special meal based on its sales next week: the special meal will continue to be offered if the restaurant profits at least $200 (i.e., 50 special meals) from it next week.
a. Develop a simulation model for the average profit from special meals next week.
b. What is the average profit from special meals, according to your simulation?
c. Find the probability that the special meal will continue to be offered.
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