Simulating sales under new market conditions
The company's financial analyst is predicting that next quarter, the worth of each sale will increase by 20% and the volatility, or standard deviation, of each sale's worth will increase by 30%. To see what Amir's sales might look like next quarter under these new market conditions, you'll simulate new sales amounts using the normal distribution and store these in the new_sales
DataFrame, which has already been created for you.
In addition, norm
from scipy.stats
, pandas
as pd
, and matplotlib.pyplot
as plt
are loaded.
This exercise is part of the course
Introduction to Statistics in Python
Exercise instructions
- Currently, Amir's average sale amount is $5000. Calculate what his new average amount will be if it increases by 20% and store this in
new_mean
. - Amir's current standard deviation is $2000. Calculate what his new standard deviation will be if it increases by 30% and store this in
new_sd
. - Create a variable called
new_sales
, which contains 36 simulated amounts from a normal distribution with a mean ofnew_mean
and a standard deviation ofnew_sd
. - Plot the distribution of the
new_sales
amount
s using a histogram and show the plot.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Calculate new average amount
new_mean = ____
# Calculate new standard deviation
new_sd = ____
# Simulate 36 new sales
new_sales = ____
# Create histogram and show
plt.____
____