Managing Ashland MultiComm ServicesThe Ashland MultiComm Services (AMS) marketing department wants to increase subscriptions for its 3-For-All telephone, cable, and Internet combined service. AMS marketing has been conducting an aggressive direct-marketing campaign that includes postal and electronic mailings and telephone solicitations. Feedback from these efforts indicates that including premium channels in this combined service is a very important factor for both current and prospective subscribers. After several brainstorming sessions, the marketing department has decided to add premium cable channels as a no-cost benefit of subscribing to the 3-For-All service.The research director, Mona Fields, is planning to conduct a survey among prospective customers to determine how many premium channels need to be added to the 3-For-All service in order to generate a subscription to the service. Based on past campaigns and on industry-wide data, she estimates the following:

Number of Free Premium Channels Probability of Subscriptions 00.021

0.042

0.063

0.074

0.085

0.085

3. Suppose that additional surveys of 50 prospective customers were conducted in which the number of free premium channels was varied. The results were as follows:

Number of Free Premium Channels Number of Subscriptions

1, 5

3, 6

4, 6

5, 7

How many free premium channels should the research director recommend for inclusion in the 3-For-All service? Explain.