Aregional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three different prizes: an automobile valued at $20, 000, a $125 gas card, or a $5 shopping card. to claim his or her prize, a prospective print on the back of the flier listed the probabilities of winning. the chance of winning the car was 1 out of 31, 101, the chance of winning the gas card was 1 out of 31, 101, and the chance of winning the shopping card was 31, 099 out of 31, 101. complete parts (a) through (d).
a. how many fliers do you think the automobile dealership sent fliers
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? mu = $ (round to the nearest cent as needed.)
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? sigma = $ (round to the nearest cent as needed).
d. do you think this is an effective promotion? why or why not?
a. yes. the promotion will turn a profit if the customers redeeming fliers make a average purchase greater than the expected value of the prize won, which is likely.
b. no. the promotion will only turn a profit if the customers redeeming fliers make an average purchase less than the expected value of the prize won, which is unlikely.
c. yes. the promotion will turn a profit if any of the customers redeeming fliers make an purchase, which is likely.
d. no. the promotion will not turn a profit regardless of how many customers redeeming flies make a purchase.