#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 chance of winning the gas card was 1 out of 31,324 comma and the chance of winning the shopping card was 31,322 out of 31, 324. Complete parts (a) through (d).

a) how many flied 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?

MEAN u= $

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?

SD o= $

d) do you think this is an effective promotion why or why not?

A. No. The promotion will not turn a profit regardless of how many customers redeeming fliers make a purchase.
B. Yes. The promotion will turn a profit if any of the customers redeeming fliers make a purchase, which is likely.
C. Yes. The promotion will turn a profit if the customers redeeming fliers make an average purchase greater than the expected value of the prize won, which is likely.
D. No. The promotion will only turn a profit if the customers redeeming fliers make an average purchase less than the expected value of the prize won, which is unlikely

Expert Solution

orchestra answered 2 years ago

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