Economics Please help. I have been struggling with this question. showroom. He needs the dealership to make(45 sales this month to get a special bonus of $140,000. Approximately 120 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 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? P=. 35 9.65 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 35 and 45 cars (exclusively)? The probability that he will sell between 35 and 45 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 45 cars? The probability that Jeff will sell 45 cars if the probability of a sale is increased to 40% is that Jeff will sell 45 cars if the number of people walking into the showroom is increased to 140 is makes it more likely that Jeff will sell 45 cars. Therefore, increasing the (1). (Round to three decimal places as needed.) 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 $18,000. Assuming that Jeff is risk-neutral and has the budget, should Jeff accept the offer? Jeff (2) accept the offer because the cost of the ad campaign is (3). value of increasing the number of people, (Round to the nearest dollar as needed.) Jeff should be willing to pay a maximum of $ (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)? The probability that Jeff will see at least 1 "Big Spender" is (Round to three decimal places as needed.) The probability 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 10 customers (not see one that buys, but just see one)? (1) O probability of a sale O number of people (2) O should not O should than the expected (3) O higher O lower

Economics Please help. I have been struggling with this question. showroom. He needs the dealership to make(45 sales this month to get a special bonus of $140,000. Approximately 120 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 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? P=. 35 9.65 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 35 and 45 cars (exclusively)? The probability that he will sell between 35 and 45 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 45 cars? The probability that Jeff will sell 45 cars if the probability of a sale is increased to 40% is that Jeff will sell 45 cars if the number of people walking into the showroom is increased to 140 is makes it more likely that Jeff will sell 45 cars. Therefore, increasing the (1). (Round to three decimal places as needed.) 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 $18,000. Assuming that Jeff is risk-neutral and has the budget, should Jeff accept the offer? Jeff (2) accept the offer because the cost of the ad campaign is (3). value of increasing the number of people, (Round to the nearest dollar as needed.) Jeff should be willing to pay a maximum of $ (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)? The probability that Jeff will see at least 1 "Big Spender" is (Round to three decimal places as needed.) The probability 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 10 customers (not see one that buys, but just see one)? (1) O probability of a sale O number of people (2) O should not O should than the expected (3) O higher O lower

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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