2. In an effort to increase its sales, a pizzeria wants to start a new marketing campaign promising its customers that if their order does not get delivered within an hour, the pizzas are free. On a typically Friday night, the number of orders received follows a uniform distribution between 50 and 60,² and the revenue from each order is normally distributed with mean $38 and standard deviation $9. Each order has an independent probability 0.88 of being delivered on time, regardless of the order amount. a. Using R with a seed of 1, develop a Monte Carlo simulation of 1,000 Friday nights. What is the average loss of revenue from the late-order policy over the 1,000 simulation runs? (20 pts) b. How many new orders does the marketing campaign need to generate for it to break even on average? (10 pts)

Fig: 1