Question

Assume a customer has been with a company for 10 years and has made purchases at times .2, 1.2, .8, and 3. Estimate the probability the customer is still alive.

Answer #1

If be the number of purchases, be the time of last purchase, be the time elapsed between acquisition of customer and present time, then the probability that the customer is still alive at time is given by , where

Here and

The probability that the customer is still alive is
[**Ans.**]

The customer service manager of a
company has tracked the number of customer complaints that she has
received each day for the last 25 days. The data is:
0 complaints, 1 day
1 complaint, 2 days
2 complaints, 0 days
3 complaints, 2 days
4 complaints, 4 days
5 complaints, 1 day
6 complaints, 3 days
7 complaints, 3 days
8 complaints, 5 days
9 complaint, 3 days
10 complaints, 1 day
Based on this probability distribution, calculate:
The probability...

Stacey, Inc. has been selling widgets to businesses for many
years. Some widgets are made to order and require a deposit before
being made and others are sold “off the shelf”. Please consider
each of the following sales situations experienced by Stacey, Inc.
and answer the questions after each situation.
On August 3, 2018, Stacey sells $50,000 of made to order widgets
that will cost $32,000 to a regular customer. The customer makes a
cash deposit of $30,000 for the...

A
grocery store’s reciepts show that Sunday customer purchases have a
skewed distribution with a mean of $32 and a standard deviation of
$20. Complete parts a through c below.
-Multiple choice-
1.) Explain why you cannot determime the probability that the
next Sunday customer will spend at least $40.
a.) The probability can only be determimed if the point is
less than one standard deviation away from the mean
b.) The probability can only be determimed if the point...

An analyst has made the following estimate of Company Z’s
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initially value of $1.00, company Z is expected to quit growing and
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A company has a 10% bond that has a face value of $1000 and
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semi-annually. The bonds can be called after 5 years at a premium
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The profit margin (net income to sales ratio) at New Company is
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discount had only been 6% the
customer would still have made the same quantity of purchases.
The effect of the unnecessary discount was to reduce New Company
income by:
a. 4%
b. 6%
c. 20%.*
d. None of the above
Look for process work to understand why c. 20% is the correct
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Company ABC has been paying regular dividend per share of $4 for
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It is paying all profits out as dividends and is not expected to
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It has 100,000 share outstanding and the share price is $80
Now the company instead changes to use its profit to repurchase
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1. What is the investor’s annual return in the current
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2. Calculate would be the number of shares that it would
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A company just starting its business made the following four
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Date
Number of
Units
Total Cost
Jun
1
190
$608
Jun
10
240
792
Jun
15
240
816
Jun
28
190
665
On June 25, the company made its first sale when a local customer
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Using the FIFO cost formula, the cost of the ending inventory on
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based on the probabilities given?

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the low estimate of $20,000 has a probability of 0.3.
Assume that interest rates are 8%. What is the present worth
based on the probabilities given?

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