Chapter 8.5, Problem 55E

To determine

To calculate: The expected returns of the two approaches $A_1$ and $A_2$, if the considered approaches are:

$A_1:$. A general mailing with a follow-up mailing.

$A_2:$ Door-to-door solicitation with follow-up telephone calls.

The campaign records with the estimated average donations and their corresponding probabilities for a money drive, which is organized by a campaign committee for a candidate running for public office is tabulated as:

$\begin{array}{|cc|}\hline A_1& A_2\\ \begin{array}{cc}\begin{array}{l}{x}_i\\ \left(\text{Return per Person}\right)\end{array}& p_i\\ \$10& 0.3\\ 5& 0.2\\ 0& 0.5\\ & 1.0\end{array}& \begin{array}{cc}\begin{array}{l}{x}_i\\ \left(\text{Return per Person}\right)\end{array}& p_i\\ \$15& 0.3\\ 3& 0.1\\ 0& 0.6\\ & 1.0\end{array}\\ \hline\end{array}$.

To determine

The course of action to be taken according to the expected returns.