Problem List Next Problem (1 point) to examine the efectiveness of ts four how m

Question

Problem List Next Problem (1 point) to examine the efectiveness of ts four how many of the previous years promotions prompted orders that would not have otherwise been made. The accompanying table lists the that were derived from the questionnaire, where X is overall customer behavior next year will be the same as last year, what is the expected number of promotions that each customer will take advantage of next year by ordering goods that otherwise would not be purchased? annual advertising promotions, a malil order company has sent a questionnaire to each of ts customers, asking the random variable representing the number of promotions that prompted orders. If we assume that X01 23 4 P(X) 0.0610.206 0.3290.1940.21 Expected value A previous analysis of historical records found that the mean value of orders for promotional goods is 34 dollars, with the company earning a of 25% on each order Calculate the expected value or the profit contribution next year. The fixed cost of conducting the four promotions is estimated to be 19000 dollars with a variable cost of 5.5 dollars per customer for maliling and handling costs. What is the minimum number of customers required by the company in order to cover the cost of promotions? (Round your answer to the next highest integer) Note: You can earn partial credit on this You have att 0 times

Explanation / Answer

Expected value = 2.286

x prob x*prob 0 0.061 0 1 0.206 0.206 2 0.329 0.658 3 0.194 0.582 4 0.21 0.84 Total 1 2.286

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