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5.3 Recently, a regional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three different prizes: an automobile
5.3 Recently, a regional automobile dealership sent out fliers to prospective 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 chance of winning the car was 1 out of 31,478, the chance of winning the gas card was 1 out of 31,478, and the chance of winning the shopping card was 31,476 out 31,478.
- How many fliers do you think the automobile dealership sent out?
- 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?
- 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?
- Do you think this is an effective promotion? Why or why not?
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