Question
Problem Description A door-to-door magazine salesperson has the following historical sales record. If the salesperson talks to the women of the house, there is a
Problem Description
A door-to-door magazine salesperson has the following historical sales record. If the salesperson talks to the women of the house, there is a 15% chance of making a sale. Furthermore, if the salesperson convinces the woman of the house to purchase some magazines, the relative frequency distribution for the number of subscriptions ordered is as follows:
Number of Subscription | Relative Frequency |
1 2 3 | 0.60 0.30 0.10 |
On the other hand, if the man of the house answers the door, the salesperson's chances of making a sale are 25%. In addition, the relative frequency distribution for the number of subscriptions ordered is as follows:
Number of Subscription | Relative Frequency |
1 2 3 4 | 0.10 0.40 0.30 0.20 |
The salesperson has found that no one answers the door at about 30% of the houses contacted. However, of the people who do answer the door, 80% are women and 20% are men. The salesperson's profit is $5 for each subscription sold. Use Microsoft Excel to simulate 25 sales calls. What is the total profit? What is your recommendation about this salesperson's job performance?
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