Question
R studio question [ MoviePass ] For $9.95 a month, the subscription service MoviePass allows a subscriber to watch one movie per day at most
R studio question
[MoviePass] For $9.95 a month, the subscription service MoviePass allows a subscriber to watch one movie per day at most movie theaters in the U.S. For each movie ticket used by a subscriber, MoviePass pays an average price of $9.00 to the movie theaters. MoviePass works at 91% of theaters in the U.S. and accounted for about 6% of the total domestic box office of $7.6 billion in 2018. MoviePass's business plan is to build a moviegoing "ecosystem" in which it profits from concession sales, rides to theaters, and advertising. Currently, MoviePass receives negligible income from such ancillary services. For the analysis of MoviePass's business model, assume there are 30 calendar days in each month and 360 calendar days each year. Data collected by MoviePass shows that, on each day, each subscriber has a 10% chance of watching one movie and 90% chance of not watching any movies. Whether a subscriber watches movies or not on any given day is not affected by the watching patterns in the past.
Further analysis of MoviePass data shows that 20% of its subscribers are die-hard moviegoers, who have a 20% chance of watching a movie on each day. The rest of its subscribers only watch a movie on each day with a 7.5% chance. What is the probability that a die-hard moviegoer watches at least five movies in a month?
Answer choices are:
0.17
0.26
0.43
0.57
0.74
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started