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A regional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three different prizes an automobile valued at 27 000 a 75 gas card or a 5 shopping card To claim his or her prize a prospective customer needed to present the flier at the dealership s showroom The fine print on the back of the flier listed the probabilities of winning The chance of winning the car was 1 out of 31 187 the chance of winning the gas card was 1 out of 31 187 and the chance of winning the shopping card was 31 185 out of 31 187 Complete parts a through d a How many fliers do you think the automobile dealership sent out Assume there is one car and one gas card available fliers b Using your answer to a and the probabilities listed on the flier what is the expected value of the prize won by a prospective customer receiving a flier Round to the nearest cent as needed c Using your answer to a and the probabilities listed on the flier what is the standard deviation of the value of the prize won by a prospective customer receiving a flier o Round to the nearest cent as needed d Do you think this is an effective promotion Why or why not A Yes The promotion will turn a profit if the customers redeeming fliers make an average purchase greater than the expected value of the prize won which is likely OB No The promotion will not turn a profit regardless of how many customers redeeming fliers make a purchase OC No The promotion will only turn a profit if the customers redeeming fliers make an average purchase less than the expected value of the prize won which is unlikely O D Yes The promotion will turn a profit if any of the customers redeeming fliers make a purchase which is likely

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