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?

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?

See Answer

Add Answer +20 Points

Community Answer

See all the answers with 1 Unlock

Get 4 Free Unlocks by registration

Get 4 Free Unlocks by registration

(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