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Jeff, a sales manager of a car dealership, believes that his sales force sells a car to 35% of the customers who stop by the showroom. He needs the dealership to make 40 sales this month to get a special bonus of $200,000. Approximately 120 customers visit the showroom each month. You may assume that the customers entering the dealership are independent of one another. Complete parts a through f below. a) What is the probability that he will make his bonus? The probability that he will make his bonus is. (Round to three decimal places as needed.) b) What is the probability that he will sell between 30 and 40 cars (exclusively)? The probability that he will sell between 30 and 40 cars is. (Round to three decimal places as needed.) c) Assume that Jeff can choose to either increase the motivation of his sales force so that they increase the probability of a sale to 40%, or to increase the number of people walking into the showroom to 140. Which makes it more likely that Jeff will sell 40 cars? The probability that Jeff will sell 40 cars if the probability of a sale is increased to 40% is . The probability that Jeff will sell 40 cars if the number of people walking into the showroom increased to 140 is. Therefore, increasing the V makes it more likely that Jeff will sell 40 cars. (Round to three decimal places as needed.)

Jeff, a sales manager of a car dealership, believes that his sales force sells a car to 35% of the customers who stop by the showroom. He needs the dealership to make 40 sales this month to get a special bonus of $200,000. Approximately 120 customers visit the showroom each month. You may assume that the customers entering the dealership are independent of one another. Complete parts a through f below. a) What is the probability that he will make his bonus? The probability that he will make his bonus is. (Round to three decimal places as needed.) b) What is the probability that he will sell between 30 and 40 cars (exclusively)? The probability that he will sell between 30 and 40 cars is. (Round to three decimal places as needed.) c) Assume that Jeff can choose to either increase the motivation of his sales force so that they increase the probability of a sale to 40%, or to increase the number of people walking into the showroom to 140. Which makes it more likely that Jeff will sell 40 cars? The probability that Jeff will sell 40 cars if the probability of a sale is increased to 40% is . The probability that Jeff will sell 40 cars if the number of people walking into the showroom increased to 140 is. Therefore, increasing the V makes it more likely that Jeff will sell 40 cars. (Round to three decimal places as needed.)

Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter14: Counting And Probability
Section14.2: Probability
Problem 48E: Quality Control To control the quality of their product, the Bright-Light Company inspects three...
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Please answer question a, b, c, d, e, f. Incomplete answer will not receive ''like''.

f) If 14% of customers are "Big Spenders" who earn the firm a lot of money, what is the probability that Jeff will see at least 1 "Big Spender" in the next 20 customers (not see one that buys, but just see one)? The probability that Jeff will see at least 1 "Big Spender" is (Round to three decimal places as needed.)
Transcribed Image Text:f) If 14% of customers are "Big Spenders" who earn the firm a lot of money, what is the probability that Jeff will see at least 1 "Big Spender" in the next 20 customers (not see one that buys, but just see one)? The probability that Jeff will see at least 1 "Big Spender" is (Round to three decimal places as needed.)
Jeff, a sales manager of a car dealership, believes that his sales force sells a car to 35% of the customers who stop by the showroom. He needs the dealership to make 40 sales this month to get a special bonus of $200,000. Approximately 120 customers visit the showroom each month. You may assume that the customers entering the dealership are independent of one another. Complete parts a through f below. a) What is the probability that he will make his bonus? The probability that he will make his bonus is (Round to three decimal places as needed.) b) What is the probability that he will sell between 30 and 40 cars (exclusively)? The probability that he will sell between 30 and 40 cars is (Round to three decimal places as needed.) c) Assume that Jeff can choose to either increase the motivation of his sales force so that they increase the probability of a sale to 40%, or to increase the number of people walking into the showroom to 140. Which makes it more likely that Jeff will sell 40 cars? The probability that Jeff will sell| 40 cars if the probability of a sale is increased to 40% is . The probability that Jeff will sell 40 cars the number of people walking into the showroom is increased to 140 is Therefore, increasing the V makes it more likely that Jeff will sell 40 cars. (Round to three decimal places as needed.) d) A marketing consultant suggests that she can produce an ad campaign that will increase the number of people walking into the showroom to 140 at a cost of $20,000. Assuming that Jeff is risk-neutral and has the budget, should Jeff accept the offer? Jff V accept the offer because the cost of the ad campaign is V than the expected value of increasing the number of people, $ . (Round to the nearest dollar as needed.) e) What is the maximum amount that Jeff should be willing to pay to increase the number of people entering the showroom to 140 (assuming that he is risk-neutral and perfectly rational)? Jeff should be willing to pay a maximum of $ (Round to the nearest dollar as needed.)
Transcribed Image Text:Jeff, a sales manager of a car dealership, believes that his sales force sells a car to 35% of the customers who stop by the showroom. He needs the dealership to make 40 sales this month to get a special bonus of $200,000. Approximately 120 customers visit the showroom each month. You may assume that the customers entering the dealership are independent of one another. Complete parts a through f below. a) What is the probability that he will make his bonus? The probability that he will make his bonus is (Round to three decimal places as needed.) b) What is the probability that he will sell between 30 and 40 cars (exclusively)? The probability that he will sell between 30 and 40 cars is (Round to three decimal places as needed.) c) Assume that Jeff can choose to either increase the motivation of his sales force so that they increase the probability of a sale to 40%, or to increase the number of people walking into the showroom to 140. Which makes it more likely that Jeff will sell 40 cars? The probability that Jeff will sell| 40 cars if the probability of a sale is increased to 40% is . The probability that Jeff will sell 40 cars the number of people walking into the showroom is increased to 140 is Therefore, increasing the V makes it more likely that Jeff will sell 40 cars. (Round to three decimal places as needed.) d) A marketing consultant suggests that she can produce an ad campaign that will increase the number of people walking into the showroom to 140 at a cost of $20,000. Assuming that Jeff is risk-neutral and has the budget, should Jeff accept the offer? Jff V accept the offer because the cost of the ad campaign is V than the expected value of increasing the number of people, $ . (Round to the nearest dollar as needed.) e) What is the maximum amount that Jeff should be willing to pay to increase the number of people entering the showroom to 140 (assuming that he is risk-neutral and perfectly rational)? Jeff should be willing to pay a maximum of $ (Round to the nearest dollar as needed.)
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