13) A logging truck sales representative can contact either one or two potential buyers per day...

13) A logging truck sales representative can contact either one or two potential buyers per day with probabilities of 0.25 and 0.75, respectively. Each contact will result in either no sale or a $75,000 sale with probabilities of 0.85 and 0.15, respectively (hint: start with a tree diagram)

a) Create a tree diagram that illustrates this probabilistic situation.

b) Show the probability distribution of daily sales.

c) What is the expected value of daily sales?

d) What is the standard deviation of daily sales?

Expert Solution

orchestra answered 2 years ago

13) A logging truck sales representative can contact either one or two potential buyers per day...

13) A logging truck sales representative can contact either one or two potential buyers per day with probabilities of 0.25 and 0.75, respectively. Each contact will result in either no sale or a $75,000 sale with probabilities of 0.85 and 0.15, respectively(hint: start with a tree diagram) a) Show the probability distribution of daily sales. b) What is the expected value of daily sales? c) What is the standard deviation of daily sales?

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13) A logging truck sales representative can contact either one or two potential buyers per day...

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