Math Problem Statement
Solution
The problem in the image involves calculating the expected value and analyzing the effectiveness of an ad campaign. Let's break it down:
Part (a): Find the expected value (to you) per ad that is viewed.
The key information given is:
- The cost of the ad per view is $0.14.
- The price of the product is $17.50.
- The probability of a purchase after someone sees the ad is 1 in 250 people (which is ).
To calculate the expected value per ad view, you can use the formula for expected value:
Here’s how we can plug the values in:
- Probability of purchase =
- Profit per purchase = $17.50 (price of the product)
- Cost per ad view = $0.14
Let me calculate this value for you.
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Math Problem Analysis
Mathematical Concepts
Probability
Expected Value
Cost-Benefit Analysis
Formulas
Expected Value = (Probability of purchase) × (Profit per purchase) - (Cost per ad view)
Theorems
-
Suitable Grade Level
Grades 9-11
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