Question Solved1 Answer 5.3 Recently, a regional automobile dealership sent out fliers to perspective customers indicating that they had already won one of three different prizes: an 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 31,478 , the chance of winning the gas card was 1 out of 31,478 , and the chance of winning the shopping card was 31,476 out of 31,478 . a. How many fliers do y ou 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? 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? d. Do you think this is an effective promotion? Why or why not?

8JHARC The Asker · Other Business
5.3 Recently, a regional automobile dealership sent out fliers to perspective customers indicating that they had already won one of three different prizes: an 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&qpos;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 31,478 , the chance of winning the gas card was 1 out of 31,478 , and the chance of winning the shopping card was 31,476 out of 31,478 .
a. How many fliers do y ou 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?
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?
d. Do you think this is an effective promotion? Why or why not?
Transcribed Image Text: 5.3 Recently, a regional automobile dealership sent out fliers to perspective customers indicating that they had already won one of three different prizes: an 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 31,478 , the chance of winning the gas card was 1 out of 31,478 , and the chance of winning the shopping card was 31,476 out of 31,478 . a. How many fliers do y ou 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? 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? d. Do you think this is an effective promotion? Why or why not?
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Transcribed Image Text: 5.3 Recently, a regional automobile dealership sent out fliers to perspective customers indicating that they had already won one of three different prizes: an 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 31,478 , the chance of winning the gas card was 1 out of 31,478 , and the chance of winning the shopping card was 31,476 out of 31,478 . a. How many fliers do y ou 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? 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? d. Do you think this is an effective promotion? Why or why not?
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(a) Based on the fact that the odds of winning are expressed out with a base of 31,478 , you will think that the automobile dealership sent out 31,478 fliers.(b) mu=Sigma_(i=1)^(N)X_(i)P(X_(i))=$5.80(c) quad sigma=sqrt(sum_(i=1)^(N)[X_(i)-E(X_(i))]^(2)P(X_(i)))=$140.88(d) The total ... See the full answer