Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Angel Hotel Group shares its customer information with Google so that whenever a user is using Google's search engine, the hotel would know whether the

image text in transcribedimage text in transcribed
Angel Hotel Group shares its customer information with Google so that whenever a user is using Google's search engine, the hotel would know whether the user is a registered customer at the hotel. Suppose the hotel's marketing department mainly targets the hotel's registered customers that are searching for travel related keywords such as "hotel" on Google. For each regis- tered customer /, let X, = 1 if the customer is searching for a travel-related keyword and X, = 0 if otherwise. For each registered customer doing a travel-related search, the hotel Is able to win the bid to push its ads to the customer with a probability of 40. For those registered customers not searching for travel-related keywords, they see the hotel's ads with a probability of 5% through internet traffic outside Google. From Google Ad's analyt- ics data, the proportion of registered customers' searching for hotels on Google is about 20%%. Let W, 6 {0, 1) denote a registered customer's treatment assignment such that W/ = 1 means the customer sees the hotel's ad whereas W, = 0 when the customer does not see the hotel's ad. Let Y, 6 {0, 1) be the observed outcome where Y, = 1 if the customer / makes a booking and Y, = 0 if otherwise. Each customer / is associated with the two potential outcomes Y,(0)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Kin Lo, George Fisher

3rd Edition Vol. 1

133865940, 133865943, 978-7300071374

Students also viewed these Mathematics questions