Exhibit 12.5 The Following Questions Use the Information Below

question 63

Short Answer

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ?

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Definitions:

Poisson Distribution

A probability distribution that measures the probability of a given number of events happening in a fixed interval of time or space.

Unsafe Levels

Conditions or thresholds that exceed the accepted or legal safety limits, posing risks to health or safety.

Radioactivity

The spontaneous emission of radiation from the nucleus of an unstable atom as it changes to a more stable form.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.