Number of Channels Probabilty of Subscriptions 3. Study the table given and answ
ID: 3124960 • Letter: N
Question
Number of Channels Probabilty of Subscriptions
3. Study the table given and answer the question after you calculate four possibilities.
a. 1 free premium channel, 5 subscriptions, pi = 0.04, P(X 5) =
b. 3 free premium channels, 6 subscriptions, pi = 0.07, P(X 6) =
c. 4 free premium channels, 6 subscriptions, pi = 0.08, P(X 6) =
d. (5 points) 5 free premium channels, 7 subscriptions, pi = 0.085, P(X 7) =
Given all the evidence that you have collected from all your surveys of 50 prospective customers, answer the question with full explanation. Use this entire assignment not only answers to #3. [Hint: Consider AMS’s profits in your answer.] How many free premium channels should the research director recommend for inclusion in the 3-For-All service?
0 0.02 1 0.04 2 0.06 3 0.07 4 0.08 5 0.085Explanation / Answer
a. 1 free premium channel, 5 subscriptions, pi = 0.04, P(X 5) = 1 - 0.02 = 0.98
b. 3 free premium channels, 6 subscriptions, pi = 0.07, P(X 6) = 1 - 0.02 - 0.04 - 0.06= 0.88
c. 4 free premium channels, 6 subscriptions, pi = 0.08, P(X 6) = 1 - 0.02 - 0.04 - 0.06 - 0.07 = 0.81
d. 5 free premium channels, 7 subscriptions, pi = 0.085, P(X 7) = 1 - 0.02 - 0.04 - 0.06 - 0.07 - 0.08 = 0.73
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