A salesperson in a large bicycle shop is paid a bonus if he sells more than 4 bicycles a day. The probability of selling more than 4 bicycles a day is only .40. If the number of bicycles sold is greater than 4, the distribution of sales is as shown in Table.
No. of Bicycles Sold
Probability
5
.35
6
.45
7
.15
8
.05
The shop has four different models of bicycles. The amount of the bonus paid out varies by type. The bonus for model A is $10; 40% of the bicycles sold are of this type. Model B accounts for 35% of the sales and pays a bonus of $15. Model C has a bonus rating of $20 and makes up 20% of the sales. Finally, model D pays a bonus of $25 for each sale but accounts for only 5% of the sales. Develop a simulation model to calculate the bonus a salesperson can expect in a day.
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