A marketing agency has developed three vacation packages to promote a timeshare

Question

A marketing agency has developed three vacation packages to promote a timeshare plan at a new resort. They estimate that 30% of potential customers will choose the Day Plan, which does not include overnight accommodations: 50% will choose the Overnight Plan, which includes one night at the resort, and 20% will choose the Weekend Plan, which includes two nights. Complete parts a and b below. a) Find the expected value of the number of nights potential customers will need. E(X)= » night(s) (Simplify your answer. Type an integer or a decimal).

Explanation / Answer

P(0 nights) = 0.3

P(1 nights) = 0.5

P(2 nights) = 0.2

E(X) = 0 * 0.3 + 1 * 0.5 + 2 * 0.2 = 0.9 nights

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