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Unformatted text preview: and c xed), and similarly as a function of and c . Does it make intuitive sense? (b) Simulate the system under the optimal threshold with the values for ( , , c ) as above 10,000 times. ( y * = 2 . 02 in this case). Plot a histogram of the sellers prot under the optimal threshold. Use the simulated samples to compute the mean, standard deviation, the 5 th-percentile, and 95 th-percentile of the optimal prot. (c) Repeat part (a) for (non-optimal) threshold values of y * = 0 . 75 and y * = 3. What do you notice about the histogram? Does it make intuitive sense? 1...
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- Spring '08
- Operations Research