Question
Door-to-Door Marketing.A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 10 homes. Consultants have
Door-to-Door Marketing.A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 10 homes. Consultants have estimated that they should expect to find someone home 80 percent of the time. When someone is home, 65 percent of the time it is a female. Thirty percent of females make a purchase, and when they do so the dollar value of their purchase is normally distributed with a mean of $22 and a standard deviation of $5. Males purchase 20 percent of the time, and the dollar value of their purchase is normally distributed with a mean of $28 and a standard deviation of $3.
a. What is the total amount they can expect to generate in revenues from these 10 visits?
b. What is the standard deviation of total revenues over 10 visits?
c. What is the probability they will make more than $750?
PLEASE USE SOLVER FOR EXCEL. That is what I am using and my answer doesn't make any sense!
Currently, I have
| visit | someone answers | female | male | purchase by female | purchase by male | Female Purchase Amount | Male Purchase Amount |
| 1 | IF(RAND()<=0.2,1,0) | B2*IF(RAND()<=0.65,1,0) | B2*(1-C2) | C2*IF(RAND()<=0.3,1,0) | D2*IF(RAND()<=0.2,1,0) | IF(E2=1, PsiNormal(22,5), 0) | IF(F2=1, PsiNormal(28,3),0) |
| 2 | 1 | 0 | 1 | 0 | 0 | $0.00 | $0.00 |
| 3 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| 4 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| 5 | 1 | 0 | 1 | 0 | 0 | $0.00 | $0.00 |
| 6 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| 7 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| 8 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| 9 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| 10 | 1 | 1 | 0 | 0 | 0 | $0.00 | $0.00 |
| TOTAL | SUM(G2:H11)+PsiOutput() |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a Expected Total Revenue from 10 Visits To calculate the expected total revenue we need to follow these steps Calculate the expected number of successful visits Calculate the expected number of females and males from these successful visits Calculate the expected number of purchases by females and males Calculate the expected revenue from these purchases 1 Expected Number of Successful Visits The probability of finding someone home is 80 so Expectednumberofsuccessfulvisits 10 08 8 textExpected number of successful visits 10 times 08 8 Expectednumberofsuccessfulvisits10088 2 Expected Number of Females and Males From the successful visits 65 of the time it will be a female Expectednumberoffemales 8 065 52 textExpected number of females 8 times 065 52 Expectednumberoffemales806552 Expectednumberofmales 8 035 28 textExpected number of males 8 times 035 28 Expectednumberofmales803528 3 Expected Number of Purchases Females make a purchase 30 of the time Expectednumberoffemalepurchases 52 03 156 textExpected number of female ...
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Complex Variables and Applications
Authors: James Brown, Ruel Churchill
8th edition
73051942, 978-0073051949
