Question
Sea End Online Clothing advertises its new brand of Oxford shirts on the Internet. Based on large amounts of data on past purchasing experience, the
Sea End Online Clothing advertises its new brand of Oxford shirts on the Internet.
Based on large amounts of data on past purchasing experience, the probability distribution of the number of shirts ordered per household generated by this promotional campaign was determined and is tabulated below:
Number of Shirts Ordered per Household (x) | Probability f(x) |
0 | 0.90 |
1 | 0.04 |
2 | 0.03 |
3 | 0.02 |
4 | 0.01 |
There are 250,000 households in Sea End's customer data base.
The profit generated from a household that orders x Oxford Shirts is given by the following formula:
PROFIT = 28x - 4 for x = 1,2,3,4.
= 0 for x = 0.
Estimate the total profit that Sea End will realize from its sale of Oxford Shirts.
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