Suppose the manager in Problem 4-38 is concerned about alienating customers who buy more than $20.00, since

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Suppose the manager in Problem 4-38 is concerned about alienating customers who buy more than $20.00, since they would not be eligible to win the free gas under the original concept. To overcome this, she is thinking about changing the contest. The customer will get free gas if any of the following happens:

$21.11, $22.22, $23.33, $24.44, $25.55, $26.66, $27.77, $28.88, $29.99 Past data show that only 5% of all customers require $30.00 or more. If one of these big-volume customers arrives, he will get to blindly draw a ball from a box containing 100 balls (99 red, 1 white). If the white ball is picked, the customer gets his gas free. Considering this new promotion, what is the probability that a customer will get free gas?

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Related Book For  book-img-for-question

Business Statistics A Decision Making Approach

ISBN: 9780136121015

8th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry, Kent D. Smith

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