Jeff, a sales manager of a car dealership, believes that his sales force sells a car to 35% of the customers who stop
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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
Jeff, a sales manager of a car dealership, believes that hissales force sells a car to 35% of the customers who stop by theshowroom. He needs the dealership to make 60 sales this month toget a special bonus of $160,000. Approximately 120 customers visitthe showroom each month. You may assume that the customers enteringthe dealership are independent of one another. Complete parts athrough f below. Question content area bottom Part 1 a) What isthe probability that he will make his bonus? The probability thathe will make his bonus is (Round to three decimal places asneeded.) Part 2 b) What is the probability that he will sellbetween 50 and 60 cars (exclusively)? The probability that he willsell between 50 and 60 cars is enter your response here. (Roundto three decimal places as needed.) Part 3 c) Assume that Jeffcan choose to either increase the motivation of his sales force sothat they increase the probability of a sale to 40%, or toincrease the number of people walking into the showroom to 140 .Which makes it more likely that Jeff will sell 60 cars? Theprobability that Jeff will sell 60 cars if the probability of asale is increased to 40% is _ The probability that Jeff willsell 60 cars if the number of people walking into the showroom isincreased to 140 is _ Therefore, increasing the number ofpeople makes it more likely that Jeff will sell 60 cars. (Round tothree decimal places as needed.) Part 4 d) A marketing consultantsuggests that she can produce an ad campaign that will increase thenumber 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? Jeff ___ accept the offer becausethe cost of the ad campaign is __ than the expected value ofincreasing the number of people, $__ enter your response here.(Round to the nearest dollar as needed.) Part 5 e) What is themaximum amount that Jeff should be willing to pay to increase thenumber of people entering the showroom to (assuming that he isrisk-neutral and perfectly rational)? Jeff should be willing topay a maximum of $__ enter your response here. (Round to thenearest dollar as needed.) Part 6 f) If 19% of customers are"Big Spenders" who earn the firm a lot of money, what is theprobability that Jeff will see at least 1 "Big Spender" in thenext 15 customers (not see one that buys, but just see one)? Theprobability that Jeff will see at least 1 "Big Spender" is enter your response here. (Round to three decimal places asneeded.)