Julia runs her own business. Historically, she knows that when she sends emails to customers that 40 percent of those emails are never opened, 40 percent are opened but with low interaction, and 20 percent are opened and customers follow up on the links in the emails. Julia is able to link customer spending in the following days to data on emails. She gets $0 from customers that did not open emails, $50 from customers who opened emails with low interaction, and $100 from customers who opened the email and followed up on the links. What is the expected value of an email?
Julia runs her own business. Historically, she knows that when she sends emails to customers that 40 percent of those emails are never opened, 40 percent are opened but with low interaction, and 20 percent are opened and customers follow up on the links in the emails. Julia is able to link customer spending in the following days to data on emails. She gets $0 from customers that did not open emails, $50 from customers who opened emails with low interaction, and $100 from customers who opened the email and followed up on the links. What is the expected value of an email?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Julia runs her own business. Historically, she knows that when she sends emails to customers that 40 percent of those emails are never opened, 40 percent are opened but with low interaction, and 20 percent are opened and customers follow up on the links in the emails. Julia is able to link customer spending in the following days to data on emails. She gets $0 from customers that did not open emails, $50 from customers who opened emails with low interaction, and $100 from customers who opened the email and followed up on the links. What is the expected value of an email?
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