Calculate the expected value of the prize

Reference no: EM13988509

Cracker Jack first appeared in 1893 at the Chicago World's Fair. Enormousl y popular ever since (250 million boxes are sold each year), the snack owes more t han a little of its success, especially wit h children, to lhe toy included in each box. When a new N ult y Deluxe flavor was introduced in the mid-1990s, that familiar marketing gimmick was raised to a new level. Placed in one box was a certificate redeemable for a $10,000 ring; in 50 other boxes were certificates for a Breakfast m Tiffany's video (a movie in which the leading character, Holly Golightly, finds her engagement ring in a Cracker Jack box); the usual toys and puzzles were put in all the other boxes (183). Calculate the expected value of the prize in a box of Nu tty Deluxe Cracker Jack. Assume tha t 5 million boxes were distribu ted during t ha t first year. Also, assume that each video was worth $30 and each other prize 1.2.

Reference no: EM13988509

Questions Cloud

Explain the importance of establishing ground rules : Explain the importance of establishing ground rules and respecting cultures amongst team members. How does diversity within members affect the performances of the group as a whole

Feet carpet cleaning company : Recall t he telemarketing campaign launched by the Wipe Your Feet carpet cleaning company described in Example 3.2.8. On the average, how many new cusrnmers would that c:ffurt iden tify? How 1lll111y calls would they have lo make in order to find ..

The town''s population is expected to grow : A small town has a current population of 20,000 permanent residents. The town's population is expected to grow at a rate of only 0.5% per year at least for the next t

Write an informative speech on rottweilers : Write an Informative speech on "Rottweilers". What did their parents do for work? Did they have siblings? How was their early childhood including schooling and family life?

Calculate the expected value of the prize : Calculate the expected value of the prize in a box of Nu tty Deluxe Cracker Jack. Assume tha t 5 million boxes were distribu ted during t ha t first year. Also, assume that each video was worth $30 and each other prize 1.2.

What is the density of this metal : A cube 5.4cm on each side is made of a metal alloy. After you drill a cylindrical hole 2.5cm in diameter all the way through and perpendicular to one face, you find that the cube weighs 7.25N . What is the density of this metal? Express your answer..

Company average daily prolit : The pdf describing the daily profit, X, earned by Acme Industries was derived in Example 3.3.7. Find the company's average daily prolit.

Discussion analyzing the flexible budget : Do you agree with the president? Why or why not? Explain your point - where were costs in line and where were they out of line?

What will be its new density : A cube of compressible material (such as StyrofoamTM or balsa wood) has a density ρ and sides of length L. If you keep its mass the same, but compress each side to 0.500 of its length, what will be its new density, in terms of ρ ?

User Account

All Pages