Question
Representatives from the American Heart Associations are planning to go door-to-door throughout a community, soliciting contributions. From past experience, they know that when someone answers
Representatives from the American Heart Associations are planning to go door-to-door throughout a community, soliciting contributions. From past experience, they know that when someone answers the door, 80% of the time it is a femald and 20% of the time it is a male. They also know that 70% of the females who answer the door make a donation, whereas only 40% of the males who answer the door make donations. The amount of money that females contribute follows a normal distribution with a mean of $20 and standard deviation of $3. The amount of money that males contribute follows a normal distribution with a mean of $10 and standard deviation of $2. (25 pt)
Questions:
1. Create a spreadsheet model that simulates what might happen whenever a representative of the American Heart Association knocks on a door and someone answers.
2. Replicate your model 5000 times, what is the average contribution the Heart Association can expect to receive when someone answers the door?
3. Suppose that the Heart Association plans to visit 300 homes on a given Saturday. If no one is home at 25% of the residences, what is the total amount that the Heart Association can expect to receive in donations?
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