Assignment 3
** PLEASE NOTE: You don’t need to record a video for this assignment**
Managing Ashland MultiComm Services
1. If a sample of 50 prospective customers is selected and no free premium channels are included in the 3-For-All service offer, given past results, what is the probability that:
a. Fewer than 3 customers will subscribe to the 3-For-All service offer?
. 0 customer or 1 customer will subscribe to the 3-For-All service offer?
c. More than 4 customers will subscribe to the 3-For-All service offer?
d. Suppose that in the actual survey of 50 prospective customers, 4 customers subscribe to the 3-For-All offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer?
2. Instead of offering no premium free channels as in Problem 1, suppose that two free premium channels are included in the 3-For-All service offer. Given past results, what is the probability that:
a. Fewer than 3 customers will subscribe to the 3-For-All service offer?
. 0 customer or 1 customer will subscribe to the 3-For-All service offer?
c. More than 4 customers will subscribe to the 3-For-All service offer?
d. Compare the results of (a) through (c) to those of Problem 1.
e. Suppose that in the actual survey of 50 prospective customers, 6 customers subscribe to the 3-For-All offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer?
f. What do the results in (e) tell you about the effect of offering free premium channels on the likelihood of obtaining subscriptions to the 3-For-All service?
3. Suppose that additional surveys of 50 prospective customers were conducted in which the number of free premium channels was varied. The results were as follows:
Number of free premium channels
Number of subscriptions
1
5
3
6
4
6
5
7
How many free premium channels should the research director recommend for inclusion in the 3-For-All service? Explain.