To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3900, and the average first-year commission for each new account opened is $5500. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. Determine the equation for computing Gustin’s profit per seminar, given values of the relevant parameters. Round your answers to the nearest dollar.Profit = (New Accounts Opened × $ fill in the blank 1) – $ fill in the blank 2What type of random variable is the number of new accounts opened? (Hint: Review Appendix 16.1 for descriptions of various types of probability distributions.)The number of new accounts opened is a random variable with fill in the blank 4 trials and fill in the blank 5 probability of a success on a single trial.

From the given information ,Total number of trials , n = 25 Each seminar costs Gustin = $3900the…

Answered: To generate leads for new business,…

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter9: Sequences, Probability And Counting Theory

Section9.7: Probability

Problem 60SE: Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the...

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To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3900, and the average first-year commission for each new account opened is $5500. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account.

Determine the equation for computing Gustin’s profit per seminar, given values of the relevant parameters. Round your answers to the nearest dollar.

Profit = (New Accounts Opened × $ fill in the blank 1) – $ fill in the blank 2
What type of random variable is the number of new accounts opened? (Hint: Review Appendix 16.1 for descriptions of various types of probability distributions.)

The number of new accounts opened is a

random variable with fill in the blank 4 trials and fill in the blank 5 probability of a success on a single trial.

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