Question No 5.3 Recently, a regional automobile dealership sent out

fliers to perspective customers, indicating that they had

already won one ofthree different prizes: a 2008 Kia Optima

valued at $15,000, a $500 gas card, or a $5 Wal-Mart 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 lout of3 I ,478,

the chance of winning the gas card was lout of 31,478, and

the chance of winning the shopping card was 31,4 76 out

31,478.

a. How many fliers do you think the automobile dealership

sent out?

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?

c. Using your answer to (a) and the probabilities listed on

the flier, what is the standard deviation ofthe value of the

prize won by a prospective customer receiving a flier?

d. Do you think this is an effective promotion? Why or why

not?