The following case study pertains to all the questions.

A company is marketing a new product. They want to create a new campaign to maximize the profit from mailing to their prospects. Here are the facts:

• They have 100,000 people on their list.
• The response rate to previous campaigns has been 1%.
• The all-in cost of each mailing is $5.
• The gross profit from each sale is $250.
• Based on test data results, the company constructed a lift curve (shown as a table below):

1. If the company sends a mailing only to the top 10% of the list, the expected number of responders is:__________?

2.If the company sends a mailing only to the top 10% of the list, the total cost of mailing is given by the expression: 10% * 100,000 * $5?

3. In the top 30% of the list, the expected number of responders is given by the expression: 90% * 100,000.?

4. If the company targets the top 20% to send a mailing to, the expected gross revenue is given by the following expression:__________?

5. If the company targets the top 20% to send a mailing to, the total cost of mailing is given by the following expression:__________?

6. If the company mails to 20% of its list at random, the expected profit is given by the following expression:__________?

List Penetration Responders 10% 50% 20% 80% 30% 90% 40% 100% 50% 100% 60% 100% 70% 100% 80% 100% 90% 100% 100% 100%