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Question 1 THE MARKET is a retailer who sends a weekly newsletter with special offers. Individuals can regi on-line and instoreand then receive by email

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Question 1 THE MARKET is a retailer who sends a weekly newsletter with special offers. Individuals can regi on-line and instoreand then receive by email a list of products on offer. THE MARKET monitors 5; and computes purchase probabilities for the various products as well as the variation of these probabilities across customer categories. The company has observed thatmost purchases involve only one item per product. The so-called binomial distribution can be used to describe uncertain situations of this kind where there are two possible outcomes; a customer either buys a certain product or not. The binomial distribution can be approximated by the normal distribution such that the number of products sold is normally distributed with a mean of Hip and a standard deviation of sortl npll-pl} where n is the number of customers and p is the purchase probability. al THE MARKET wishes to analyse the potential revenue generated by the newsletter from its top-seller unisex bike whenever it appears on the list in the weekly newsletter. The scooter is priced at 220, and offered frequently over the summer period. The purchase probabilityr for this product over its peak-demand period [based on historical analysis} is estimated at 0.5%. What is the probability that the company will achieve revenues of at least 25K from this product in a certain newsletter, given that they have 20,000 customers signed up for newsletter? Which business actions and situations would help the company achieve these revenues? Please discuss briey. bl THE MARKET is planning to attract more customers to sign up for the newsletter and has to decide upon its advertising strategy and budget. In particular, they wish to know the number of new customers they need to attract to sign up in order to achieve revenues of at least 30K from their top-seller product, mentioned above, with 05% probability {each time the product appears on their list}. Derive this number for them and comment on it

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