Question
Customers come to your store buying either just Product A, just Product B, both A and B, or none. If in a visit they buy
Customers come to your store buying either just Product A, just Product B, both A and B, or none. If in a visit they buy product A, in the next visit they buy A 20% of the time, B 40% of the time and both 25% of the time. If they buy B now, in the next visit they buy A 40% of the time, B 15%, both 20%. If they buy both, they do not buy both in the next visit, and buy A 30% of the time and B 40% of the time. If they buy none this visit, then there is a 40% chance they buy both in the next visit, no chance that they buy none again, and equal probability for buying product A or product B next time. There are 300 visitors in a day and the company makes $10 on each product A sold, and $15 on each product B. What is the expected daily profit? Use excel to solve.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started