An insurance salesman visits up to three clients each day
An insurance salesman visits up to three clients each day, hoping to sell a new policy. He stops for the day once he makes a sale. Each client independently decides whether to buy a policy; 10% of clients purchase the policy.
(a) Create a probability model for the number of clients the salesman visits each day.
(b) Find the expected number of clients.
(c) If the salesman spends about 2 1/2 hours with each client, then how many hours should he expect to be busy each day?
(d) If the salesman earns $3,000 per policy sold, how much can he expect to make per day?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help