Value of prize won by prospective customer receiving flier

Assignment Help Operation Management

Reference no: EM13857378

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, and the chance of winning the gas card was 1 out of 31,478, and the chance of winning the shopping card was 31,476 ou of 31,478.

a. How many fliers do you think the automobile dealership sent out?

b. Using you 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?

Reference no: EM13857378

Questions Cloud

What implications have you uncovered during your research : This summarizes your final reflections for the featured topic. For instance, what implications have you uncovered during your research that you will apply to future stressful events

Invest in new machine that will improve both quality-safety : Net Present Worth #2: Your boss is wanting to invest in a new machine that will improve both quality and safety. How much can she afford to pay for this machine if it will increase revenue and reduce costs by $50,000 per year for a 5 year period? The..

Explore the annual budget of the city council you selected : Choose a city council in Australia and use internet to explore the annual budget of the city council you selected. List three items in the budget that you found surprising or particularly interesting.

Bridge construction practice by using launching method : Report on any construction based for example "BRIDGE CONSTRUCTION PRACTICE BY USING INCREMENTAL LAUNCHING METHOD"

Value of prize won by prospective customer receiving flier : 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. How many fliers d..

Completion of a comprehensive strategic plan : Objectives- The objective is to complete a written plan that will suggest a practical Strategic Direction for a company. Term Project Description - This course requires the completion of a comprehensive Strategic Plan

Levels of implied utilization change response to promotion : Fortunately for the students, a Starbucks executive happens to be in line directly in front of them. From her, they learn the following facts about this Starbucks location: There are three employee types: There is a single cashier who takes all order..

Do you associate wal-mart with organic foods : Do you associate Wal-Mart with organic foods? Is this an issue for the brand? Wal-Mart proposes to sell organic products at the same price as nonorganic food. How can Wal-Mart pull this off and still make its margins

How does the concept of risk differ for insurance company : How does the concept of risk differ for an insurance company as compared to another type of corporation or individual? Make sure to include the impact of the law of large numbers.

User Account

All Pages