Probability that weekly profit for a given week

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Jim owns an ice cream stand. Weekly sales and prices depend on the weather. If it is a normal week Jim sells between 300 and 500 ice cream cones at an average selling price of $2.50 each. If it is a hot week he sells between 350 and 675 ice cream cones at an average selling price of $2.75 each. Regardless of the weather conditions the cost per cone is $1.25 and his fixed costs per week are $100. On average, 20% of weeks are hot weeks. Perform a Monte Carlo simulation and use it to estimate Jim's average profit per week, the probability that weekly profit for a given week will be greater than $500, and the probability that any given week will result in a profit of less than $300.

Reference no: EM131658663

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