Question

Weekly demand for a certain brand of a golf ball at The Golf Outlet is normally distributed with a mean of 35 and a standard deviation of 5. The profit per box is $5.00. Write an Excel formula that simulates the weekly profit:

= 5 * 35 * NORMSINV(RAND())
= 5* NORMINV(RAND(), 35, 5)
= 5 * RANDBETWEEN(5, 35)
= NORMINV(RAND(), 5 * 35, 5)

Answer 1

= 5 * NORMINV(RAND(), 35, 5)

Explanation:

From the given information:

The total weekly profit is achieved by the multiplication of the unit profit (5) and the weekly demand.

Here, the weekly demands obey a normal distribution where the mean = 35 and the standard deviation = 5.

Using the Excel Formula:

The weekly profit can be computed as:

= 5 * NORMINV(RAND(), 35, 5)