Question

In: Statistics and Probability

A professional football team is preparing its budget for the next year. One component of the...

A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is given below. The demands are all assumed to be normally distributed. Seating Zone Seats Available Ticket Price Mean Demand Standard Deviation

seat zones - Seat availability - Ticket Price - Mean demand - standard deviation.

First Level Sideline 15,000 $100.00 14,500 750

Second Level 5,000 $90.00 4,750    500

First Level End Zone 10,000 $80.00 9,000 1,250

Third Level Sideline 21,000 $70.00 17,000 2,500

Third Level End Zone 14,000 $60.00 8,000 3,000

Determine the distribution of total revenue under these assumptions using an Excel data table with 50 simulated trials. Summarize your results with a histogram.

Solutions

Expert Solution

We simulate the demands using Excel function =NORM.INV()

For example to simulate the demand for First Level Sideline, we use NORM.INV(RAND(),14500,750)

If this demand is negative we will set it to 0

The tickets sold is min(demand,seats available)

The revenue is (number of tickets sold)*(Ticket price)

Prepare the following sheet

Columns A to F

Columns G to L

Copy the rows to make 50 trials. Paste as values to avoid changes

Get this

Use data-->data analysis-->histogram

get this

format as needed

Calculate the mean and standard deviation of total revenue

get this

orchestra answered 2 years ago
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