Question

#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

Answer 1