8. Consider a dairy farm. The fresh milk that can be produced each day is random and is a continuous uniform distribution between 87 and 110 litres. Recently, you secured a contract with a local...

8.

Consider a dairy farm. The fresh milk that can be produced each day is random and is a continuous uniform distribution between 87 and 110 litres. Recently, you secured a contract with a local childcare centre that can buy up to 100 litres a day from you. If the milk production of the day is not more than 100 litres, you sell all milk to the childcare. If the milk production of the day is more than 100 litres, you will sell the remainder to a local supermarket. Set the random seed to be 69. Set the number of simulation iterations to 2000. Round your answer to 2 decimal places.

• Simulate on average how many litres per day you can sell to the childcare?


• Suppose the milk is priced at $1 per litre when sold to childcare and $2.5 per litre at the supermarket. Estimate your average daily revenue.