View Full Version : probability
11-15-2005, 10:48 AM
ok and also to my last question:
The 1 in 1000.
So would I take 1/1000=.001
then take .001 * 52 (because people make an avg of 52 purchase/yr.)
that would =.052?
So what would i do with the other 999 that don't get a prize?Thanks
11-15-2005, 10:57 AM
Please post exactly how the problem is worded so that we can help you out. It's difficult to follow incomplete information....
11-15-2005, 11:08 AM
They have focused on three options for their credit card incentives:
A. cash back when the consumer makes an online purchase;
B. cash back when the consumer makes a purchase at a clothing store; and
C. entry into a sweepstakes whenever the consumer makes a purchase.
If they choose option C (the sweepstakes entry), they will award a prize to 1 in 1,000 purchases. Based on the frequency that consumers make purchases with their other credit cards, the team estimates that consumers will make an average of 52 purchases a year with the new card.
They have asked you about the probability of each option being preferred by card holders. They have also asked the probability of an individual consumer receiving a prize over the course of a year. Share your determination of probability in each of the situations. Explain how these two ways of assessing probability are different and how they can help make decisions
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