To calculate how much the company should expect its shoppers to spend on the website on launch day, we need to find the expected value of sales based on the probabilities and prices of the shoe types, then multiply by the total number of visitors to the website. Here’s the step-by-step process:

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Step 1: Convert probabilities into percentages

The probabilities provided are relative frequencies of shoe types sold out of a total (sum of frequencies). We need to calculate the probability for each shoe type:

1. Total frequency: $120 + 110 + 625 + 110 = 965$
2. Probabilities:
   • Sneakers: $\frac{120}{965}$
   • High heels: $\frac{110}{965}$
   • Sandals: $\frac{625}{965}$
   • Loafers: $\frac{110}{965}$

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Step 2: Calculate the expected value of one sale

Multiply the price of each shoe type by its respective probability:

$\text{Expected value} = (P_{\text{Sneakers}} \times \text{Price}_{\text{Sneakers}}) + (P_{\text{High heels}} \times \text{Price}_{\text{High heels}}) + (P_{\text{Sandals}} \times \text{Price}_{\text{Sandals}}) + (P_{\text{Loafers}} \times \text{Price}_{\text{Loafers}})$

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Step 3: Calculate total sales expectation for 3393 visitors

Multiply the expected value per sale by the total number of visitors who are expected to make a purchase.

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I’ll calculate these values now.# Data provided prices = { "Sneakers": 87.99, "High heels": 97.25, "Sandals": 71.50, "Loafers": 60.75 } frequencies = { "Sneakers": 120, "High heels": 110, "Sandals": 625, "Loafers": 110 }

total_visitors = 3393

Step 1: Calculate total frequency and probabilities

total_frequency = sum(frequencies.values()) probabilities = {shoe: freq / total_frequency for shoe, freq in frequencies.items()}

Step 2: Calculate expected value per sale

expected_value_per_sale = sum(probabilities[shoe] * prices[shoe] for shoe in prices)

Step 3: Calculate total expected sales for 3393 visitors

total_expected_sales = total_visitors * expected_value_per_sale

expected_value_per_sale, total_expected_sales(75.26041450777201, 255358.58642487045)(75.26041450777201, 255358.58642487045)successThe expected value per sale is approximately $75.26, and the total expected sales for 3,393 visitors on launch day is approximately $255,358.59.

Would you like more details, or do you have any questions?

Here are 5 related questions for further exploration:

1. How can the company increase the expected value of sales per visitor?
2. What would happen if the frequency of high-demand shoes (e.g., sneakers) increased?
3. How do variations in visitor numbers impact the ultimate revenue?
4. What strategies could the company use to reduce the likelihood of non-purchases?
5. How would discounts on certain shoes impact the expected value?

Tip: Tracking real-time purchase behavior on launch day can help refine these estimates and optimize marketing efforts.