1. Sandy James thinks that housing prices have stabilized in the past few months. To convince her boss, she intends to compare current prices with last years prices. She collects 12 housing prices from the want ads: 125,900 216,000 158,100 251,000 189,000 241,000 208,000 116,200 182,000 214,000 272,800 150,700 She then calculates the mean and standard deviation of the prices she has found. What are these two summary values? 2. A large construction company is trying to establish a useful way to view typical profits from jobs obtained from competitive bidding. Because the jobs vary substantially in size and the […]

First question: Let X be a discrete random variable. If Pr(X<6) = 1/5, and Pr(X>6) = 1/7, then what is Pr(X=6)? Please specify your answer in decimal terms and round your answer to the nearest hundredth (e.g., enter 12 percent as 0.12). **** Second question: Let X be a discrete random variable. If Pr(X<8) = 1/5, and Pr(X<=8) = 3/10, then what is Pr(X=8)? Please specify your answer in decimal terms and round your answer to the nearest hundredth (e.g., enter 12 percent as 0.12).

Cool Beans is a locally owned coffee shop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner, is considering two different marketing promotions and thinks that a CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $4.34 and has a margin of 81%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 8%. Currently, her customers average buying 2 specialty drinks per week.

 In a blood testing procedure, blood samples from 6 people are combined into one mixture. The mixture will only test negative if all the individual samples are negative. If the probability that an individual sample tests positive is 0.12, what is the probability that the mixture will test positive? 

Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI’s costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business (facilities, salaries, equipment, etc.). WACI’s monthly membership dues are $55 per person. The average member keeps his or her membership active for 24 months.