(Using MS Excel)

1. The mean cost of a phone call handled by an auto- mated customer-service system is $0.45. The mean cost of a phone call passed on to a "live" operator is $5.50. However, as more and more companies have implemented automated systems, customer annoyance with such systems has grown. Many customers are quick to leave an automated system when given an option such as "Press zero to talk to a customer service representative." According to the Center for Client Retention, 40% of all callers to automated customer- service systems automatically opt to go to a live operator when given the chance (J. Spencer, "In Search of the Operator," The Wall Street Journal, May 8, 2002, p. D1). If 10 independent callers contact an automated customer- service system, what is the probability that:

a) 0 will automatically opt to talk to a live operator?

b) exactly 1 will automatically opt to talk to a live operator?

c) 2 or fewer will automatically opt to talk to a live operator?

d) all 10 will automatically opt to talk to a live operator?

e) If all 10 automatically opt to talk to a live operator, do you think that the 40% value given in the article applies to this particular system? Explain