Explain how two ways of assessing probability are different

Assignment Help Basic Statistics

Reference no: EM13153899

The product development team from PiggyBank was convinced by your presentation and has hired you to help them with their credit card decision. They have focused on three options for their credit card incentives:

A. cash back when the consumer makes an online purchase;
B. cash back when the consumer makes a purchase at a clothing store; and
C. entry into a sweepstakes whenever the consumer makes a purchase;

If they choose option C (the sweepstakes entry), they will award a prize to 1 in 1,000 purchases. Based on the frequency that consumers make purchases with their other credit cards, the PiggyBank team estimates that consumers will make an average of 52 purchases a year with the new card.

PiggyBank has asked you about the probability of each option being preferred by card holders. They have also asked the probability of an individual consumer receiving a prize over the course of a year. Share your determination of probability in each of the situations. Explain how these two ways of assessing probability are different and how they can help make decisions.

Reference no: EM13153899

Questions Cloud

Budgeted production for the second quarter : Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter should

Chester''s elite product clack : Chester's Elite product Clack has an awareness of 72%. Chester's Clack product manager for the Elite segment is determined to have more awareness for Clack than Andrews' Elite product Apple. She knows that the first $1M in promotion generates 22% new..

Old personal loan officer at second national bank : 1.Jacqueline Strauss, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she'll ..

Gift tax liability beneath the assumption : What is her 2010 gift tax liability under the assumption that she made the $200,000 if taxable gifts in 1974 instead of 1997?

Explain how two ways of assessing probability are different : Share your determination of probability in each of the situations. Explain how these two ways of assessing probability are different and how they can help make decisions.

Personality traits-interpersonal needs and first impression : we have to write about six concepts and set up an introuducation and I really have no clue how to start up with. We need to discuss these concepts : personality traits, interpersonal needs, first impression, trust, social attraction, and phyisical ..

Customer of merchandise sold on account : Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a

Bonds maturity on the accounts and financial statements : Illustrate the effects of the payment of the face value of bonds at maturity on the accounts and financial statements.

What is the value of ccal for the calorimeter : She pours a 50.0 mL sample of water at 345 K into the calorimeter containing a 50.0 mL sample of water at 298 K. She carefully records the final temperature of the water as 317 K. What is the value of Ccal for the calorimeter?

User Account

All Pages