Question

In: Math

A regional automobile dealership sent out fliers to prospective customers indicating that they had already won...

A regional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three different​ prizes: an automobile valued at ​$20000​, a ​$150 gas​ card, or a ​$5 shopping card. To claim his or her​ prize, a prospective customer needed to present the flier at the​ dealership's showroom. The fine print on the back of the flier listed the probabilities of winning. The chance of winning the car was 1 out of 31,433​, the chance of winning the gas card was 1 out of 31,433 and the chance of winning the shopping card was 31,431 out of 31,433. Complete parts​ (a) through​ (d).

a. How many fliers do you think the automobile dealership sent​ out?

b. Using your answer to (a) and the probabilities listed on the flier, what is the expected value of the prize won by a prospective customer receiving a flier?

c.Using your answer to (a) and the probabilities listed on the flier, what is the standard deviation of the value of the prize won by a prospective customer receiving a flier?

d.Do you think this is an effective promotion? why or why not?

Solutions

Expert Solution


Related Solutions

#3 A regional automobile dealership sent out fliers to prospective customers indicating that they had already...
#3 A regional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three different​ prizes: an automobile valued at ​$21000​, a ​$125 gas​ card, or a ​$5 shopping card. To claim his or her​ prize, a prospective customer needed to present the flier at the​ dealership's showroom. The fine print on the back of the flier listed the probabilities of winning. The chance of winning the car was 1 out of 31,324​, the...
In a certain bank, previous records show that out of all prospective customers walking into the...
In a certain bank, previous records show that out of all prospective customers walking into the bank, 60 % open a checking account, 25% open a savings account and 15% open both accounts. Suppose a prospective customer is picked at random. Find the probability that the customer opens neither of the accounts
(1) A company manufacturer pipes which was sent out to customers in losts of 1000.The manufacturer...
(1) A company manufacturer pipes which was sent out to customers in losts of 1000.The manufacturer operates a sampling scheme whereby a random sample 10 is taken from each lot ready for despatch and they are released only if the number of defective pipes in the sample is less than 3.Otherwise, the whole lot of 1000 is rejected and reprocessed using the Binomial p.d.f. (I) if 5% of all the pipes produced are known to be defective, how many lots...
Due to high demand from customers and already sold-out products, the IKEA marketing and sales manager...
Due to high demand from customers and already sold-out products, the IKEA marketing and sales manager is being contacted by various customers who wish to buy a total of 50 thousand computer chairs over the next six weeks. Before saying yes to customers the sales manager needs to arrange their manufacturing. To do this they need to use the ERP system to collect relevant data from all departments, including the human resources department. What kind of data would they need...
1. Has Starbucks already factored out price sensitive customers? explain 2. Is brand loyalty a factor...
1. Has Starbucks already factored out price sensitive customers? explain 2. Is brand loyalty a factor in studying customer behavior? explain 3. Why would Starbucks raise the price of low margin products instead of more profitability ones
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT