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Lionel's Life Jacket Rentals leases life jackets each day from a supplier and rents them to customers who use them when they raft down the Delaware River. Each day, Lionel leases 30 life jackets from his supplier, at a cost of $4 per life jacket. He rents them to his customers for $15 per day. Rental demand follows the normal distribution, with a mean of 30 life jackets and a standard deviation of 6 life jackets. (In your model use integers for all demands.)
(a) Simulate this leasing policy for a month (30 days) of operation to calculate the total monthly profit. Replicate this calculation N times. What is the average monthly profit?
(b) Lionel would like to evaluate the average monthly profit if he leases 25, 30, 35, and 40 life jackets. What is your recommendation? Why?
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