Question

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Chapter 12 Monte Carlo Simulation and Risk Analysis

3. 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

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 1250

Third Level Sideline 21000 $70.00 17,000 2500

Third Level End Zone    14000 $60.00 8,000 3000

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

Answer 1