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To generate leads for new business, Guestin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for 25 individuals. each seminar cost Gustin $3500, and the average first-year-commission for each new account opened is $5000. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account.
a. Determine the equation for computing Gustin's profit per seminar, given values of the relevant parameters.
b. What Type of random variable is the number of new accounts opened?
c. Construct a spreadsheet simulation model to analyze the profitability of Gustin's seminars. would you recommend that Gustin continue running the seminars? Please do a full window screenshot with all the columns, rows and formula used.
d. How large of an audience does Gustin need before a seminar's expected profit is greater than 0
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