Question

An investment company wants to study the investment proposals based on the profit factor. While analyzing a new investment proposal, the company estimated the probability distribution for the profit as follows:

Profit (in
thousands) 
3 5 7 9 10
Probability 0.1 0.2 0.4 0.2 0.1

Using the random numbers:

19, 7, 90, 2, 57, 28

Simulate the profit of the company for six trials.

10 Mar 2024
Answer :
Word Count : 332

To simulate the profit of the company for six trials using the provided probability distribution and random numbers, we can follow these steps:

1. Generate random numbers.
2. Match the random numbers with cumulative probabilities to determine the profit.

Let's proceed with the calculations:

1. Generate random numbers: 19, 7, 90, 2, 57, 28

2. Determine cumulative probabilities:

   | Profit | Probability | Cumulative Probability |
   |--------|-------------|------------------------|
   | 3      | 0.1         ___ _______ ___ ______ _________ _____ ___ _____ _________ _______.
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__________.
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