Shawn Bishop, a neuroscience PhD student at Clarksville University, has been having problems balancing his checkbook. His monthly income is derived from a graduate research assistantship; however, he also makes extra money in most months by tutoring undergraduates in their introductory neurobiology course. His chances of various income levels are shown here (assume that this income is received at the beginning of each month)
Bishop begins his final year with $1,500 in his checking account. Simulate the cash flow for 12 months and replicate your model N times to identify Bishopâ€™s (a) ending balance at the end of the year and (b) probability that he will have a negative balance in any month.