Question

Weekly Amount of Sales in dollars Number of Weeks Probability Cumulative Probability
$2000 9.00
$3000 8.00
$4000 6.00
$5000 8.00
$6000 9.00






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Based on the following chart: You wish to create a Vlookup table to simulate the sales volume, based on a generated random number. The first such random number is 0.14. What would the amount of sale be?

Answer 1

Total weeks = 9+8+6+8+9 = 40.

Probabilities:
- $2000: 9/40 = 0.225 (cumulative 0.225)
- $3000: 8/40 = 0.200 (cumulative 0.425)
- $4000: 6/40 = 0.150 (cumulative 0.575)
- $5000: 8/40 = 0.200 (cumulative 0.775)
- $6000: 9/40 = 0.225 (cumulative 1.000)

Random number 0.14 falls in the first cumulative interval (≤ 0.225), so the simulated sale amount is $2000.