Monte Carlo Simulation Monte Carlo Simulation Monte Carlo simulation methods use repeated random sampling to model a phenomenon involving significant uncertainty in inputs. These simulations aid...

Is it possible to have someone build a basic monte carlo simulation for these three problems attached below?


Monte Carlo Simulation Monte Carlo Simulation Monte Carlo simulation methods use repeated random sampling to model a phenomenon involving significant uncertainty in inputs. These simulations aid decision makers by providing them with a range of outcomes and associated probabilities. 1. A small convenience store is trying to determine the optimal weekly order size for People magazine. The store pays one dollar for each copy and sells it for $1.95. The unsold copies can be returned for $0.50 each. The probability distribution for the demand is given below: Probability Demand .10 15 copies .20 20 .30 25 .25 30 .15 35 2. A GMC dealer wants to order an optimal number of Envoys. He believes the demand for Envoys is normally distributed with a mean of 200 and standard deviation of 30. It costs him $25,000 to order a vehicle, which he sells for $40,000. Unsold vehicles are discounted and sold at a loss of $2,000 per vehicle. How many Envoys should he order, assuming he must order a minimum of 200 vehicles? 3. A young entrepreneur is considering investing in a motel (see details in the table below). The motel business is cyclical, with the occupancy rate varying with the state of the economy. The annual occupancy rates for the previous ten years are available for this market. You may assume normal distribution. Estimates for the fixed and variable costs are also provided. Run a simulation analysis and compute the mean profit after taxes and the lower and upper limits at the 95% confidence level. The entrepreneur will invest in the motel provided the expected rate of return on his capital is at least 25%. Year Occupancy rate 1995 45% 1996 56% 1997 45% 1998 65% 1999 70% 2000 55% 2001 40% 2002 38% 2003 45% 2004 50%  Mid-Tier Motel in a City (population: 70,000) Industry Average Variable costs (33%) as % of revenue Advertising, Promotion, Franchise or Group Fees 3.3% In-room Supplies 2.7% Other variable costs 27% Fixed costs Lease payments on equipment $15,000 Interest on bank loan of $400,000 $60,000 Telephone & Fax $5,000 Depreciation expense $23,000 Employees' Wages & Salaries $125,000 Expected average tax rate 25% Number of Guest Rooms 50 Average room rent $55 Total investment in the motel is $800,000, with 50% of this as owner investment Note: The entrepreneur is not confident about the total variable cost percentage. He thinks this percentage can be 33% or 37% or even 40% of revenues. Depreciation expense will be reinvested to maintain the quality level of the property.