Question: 1. (10 points) The manager in the comic shown below has proposed a Buy One/Get One Free Sale idea as the strategy to deal

1. (10 points) The manager in the comic shown below has proposed

1. (10 points) The manager in the comic shown below has proposed a "Buy One/Get One Free" Sale idea as the strategy to deal with customer's complaints. ANY IDEAS FOR ADDRESSING OUR FIFTY PERCENT DEFECTIVE PRODUCT RATE BESIDES A "BUY ONE/GET ONE FREE SALE THAVES H (a) Explain if this would be a good strategy based on the probability theory. (b) Assume that the selling price and the production cost are $10 and $5 per unit, respectively. Also assume that the replaced product is guaranteed to a be good one. Calculate the expected gain or loss per product sale by adopting this strategy.

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