A regional automobile dealership sent out fliers to perspective customers indicating that they had already won one of the three different prizes: automobile valued at $25,000, a $100 gas card, or a $5 Walmart 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 31,748, the chance of winning the gas card was 1 out of 31,748, and the chance of winning the shopping card was 31,746 out of 31,748.How many fliers the automobile dealership sent out? Please explain. Using your answer to above and the probabilities listed on the flyer, what is the expected value ofthe price won by a prospective customer receiving a flyer? Demonstrate all necessary steps. Using your answer to the first question and the probabilities listed on the flyer what is the standarddeviation of the value of the price one by the prospective customer receiving a flyer? Demonstrate all necessary steps.Do you think this is an effective promotion? Why or why not? (Hint: Find per unit cost of reaching a single consumer. Effectiveness will depend oncustomers visit to show room.)
A regional automobile dealership sent out fliers to perspective customers indicating that they had already won one of the three different prizes: automobile valued at $25,000, a $100 gas card, or a $5 Walmart 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 31,748, the chance of winning the gas card was 1 out of 31,748, and the chance of winning the shopping card was 31,746 out of 31,748.
How many fliers the automobile dealership sent out? Please explain.
Using your answer to above and the probabilities listed on the flyer, what is the expected value ofthe
Using your answer to the first question and the probabilities listed on the flyer what is the standarddeviation of the value of the price one by the prospective customer receiving a flyer? Demonstrate all necessary steps.
Do you think this is an effective promotion? Why or why not? (Hint: Find per unit cost of reaching a single consumer. Effectiveness will depend oncustomers visit to show room.)
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