To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3,400, and the commission for each new account opened is $4,900. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. (a) Determine the equation for computing Gustin's profit per seminar, given static values of the relevant parameters. Profit = (New Accounts Opened x (b) What type of random variable is the number of new accounts opened? (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions.) O uniform random variable O polsson random variable O hypergeometric random varlable O binomial random variable O normal random variable (c) Construct a simulation model to analyze the profitability of Gustin's seminars. Would you recommend that Gustin continue running the seminars? (Use at least 1,000 trials. Round your answer to two decimal places.) From the simulation, we estimate that on average one of these seminars results in a -Select--- v of s J, so Gustin --Select--- v continue running the seminars. (d) What is the minimum number of attendees (in a multiple of five, i.e., 25, 30, 35, .--) that Gustin needs before a seminar's average profit is greater than zero? attendees
To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3,400, and the commission for each new account opened is $4,900. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. (a) Determine the equation for computing Gustin's profit per seminar, given static values of the relevant parameters. Profit = (New Accounts Opened x (b) What type of random variable is the number of new accounts opened? (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions.) O uniform random variable O polsson random variable O hypergeometric random varlable O binomial random variable O normal random variable (c) Construct a simulation model to analyze the profitability of Gustin's seminars. Would you recommend that Gustin continue running the seminars? (Use at least 1,000 trials. Round your answer to two decimal places.) From the simulation, we estimate that on average one of these seminars results in a -Select--- v of s J, so Gustin --Select--- v continue running the seminars. (d) What is the minimum number of attendees (in a multiple of five, i.e., 25, 30, 35, .--) that Gustin needs before a seminar's average profit is greater than zero? attendees
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Transcribed Image Text:To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3,400, and the commission for each new account
opened is $4,900. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account.
(a) Determine the equation for computing Gustin's profit per seminar, given static values of the relevant parameters.
Profit = (New Accounts Opened x
(b) What type of random variable is the number of new accounts opened? (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions.)
O uniform random variable
O poisson random variable
O hypergeometric random variable
O binomial random variable
O normal random variable
(c) Construct a simulation model to analyze the profitability of Gustin's seminars. Would you recommend that Gustin continue running the seminars? (Use at least 1,000 trials. Round your answer to two decimal places.)
From the simulation, we estimate that on average one of these seminars results in a -Select-- v of S
J, so Gustin --Select--- v continue running the seminars.
(d) What is the minimum number of attendees (in a multiple of five, i.e., 25, 30, 35, .--) that Gustin needs before a seminar's average profit is greater than zero?
attendees
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