Number of Sections To Offer[5 points]
A large University is attempting to determine how many sections to offer for CS101. This class is required for many majors (but not all), and some students are exempt from the course based on their high school training. The probability distribution for the number of sections needed is given in the table below.The University has to determine the number of sections to offer at the start of registration. The difficulty is that the University must determine the number of sections to offer before it finds out how many sections are demanded.Once the demanded number of sections is determined on the first week of the semester, the University can cancel or add sections. For instance, if there were more sections offered by the University than demanded by the students, then the University has to cancel the exceeded number of sections offered. If more sections are demanded than offered, then the University has to add some sections to meet the demand. Assume that subsequently canceling sections that are not required costs the University $1,000 per section. Subsequently adding new sections if demand exceed the initial requirement costs $2,000 per section. Run a Monte Carlo simulation analysis to determine the optimal number of sections to offer to minimize expected cost. Submit an analysis as well as the Excel simulation model.
(1) Simulation modeling: 3 points.(2) Monte Carlo simulation analysis: 2 points.
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