Joe Smith Is a Handyman Who Owns His Own Plumbing

question 42

Essay

Joe Smith is a handyman who owns his own plumbing business.In a typical month,the number of service calls that he gets varies according to the following distribution:
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Number of Calls } & 15 & 16 & 17 & 18 & 19 \\\hline \text { Probability } & 0.3 & 0.3 & 0.2 & 0.1 & 0.1 \\\hline\end{array}$$
His revenues per service call are normally distributed with a mean of $100 and a standard deviation of $20.His monthly expenses can range between a minimum of $1000 and a maximum of $1500,where all values between the minimum and maximum occur with equal likelihood.
a.Use Crystal Ball to simulate Mr.Smith's monthly profits.Run 1000 replications of the model.
b.What is the average monthly profit?

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Definitions:

Experienced Salespeople

Individuals who have a significant amount of knowledge and skills acquired through years of working in sales positions, enabling them to effectively understand and meet customer needs.

Prospect's Attitude

The mental state, view, or feelings a potential customer holds towards a product, service, or proposal being offered.

Sales Objection

A sales objection is a concern or question raised by a potential buyer that needs to be addressed by the seller to close a sale.

Resistance

Opposition or reluctance from potential customers against purchasing a product or adopting an idea.