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Assume the following marketing costs and profit values associated with an upcoming promotional campaign: Promotional cost per Facebook Impression: $0.97 The net value of a

Assume the following marketing costs and profit values associated with an upcoming promotional campaign:

Promotional cost per Facebook Impression: $0.97

The net value of a paid order (including average billing costs): $15.67

Cost of an unpaid order (including average billing costs): $7.87

Also, assume the following probabilities of ordering and paying for three customers.

Probability of Probability of

Customer Ordering Not Paying

Mr. Gita 25% 07%

Ms. Nikita 36% 20%

Which customer is more profitable?

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Expected Profit – who is the most profitable

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