CoffeeCoOnline is an online retail business specialising in the sale of Nespresso Compatible Coffee Pods. CoffeeCoOnline

maintains a data base of its all of its customers, in which customers are classified as "current" or "lapsed". 35% of customers are classified as current, and the rest as lapsed. Historical data suggest that if current customers are sent a promotional e-mail 10% will purchase a premium coffee pack and another 22% will purchase a standard coffee pack. For lapsed customers the percentages are 8% and 4% respectively. The company sells premium coffee packs for $120 and standard coffee packs for $100.

a) What proportion of customers will buy a premium coffee pack if they are sent a promotional email?

b)If a customer is sent promotional e-mail and buys a premium coffee pack what is the probability that they

were lapsed? Show your working.

c) What is the average revenue per customer from a promotional e-mail?

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