Average trade time in Ameritrade is 2 second. Ameritrade has promised its customers if trade time exceeds 10 second it is free (a $9.99 cost saving for the customer.) There are 120000 average daily trades.

1. What is the probability that no customer gets free trade?

The potential answers are:

A: 98.77%

B: 97.65%

C: 96.43%

D: 98.57%

E: 99.33%

2. What is the daily cost of this policy to Ameritrade?

The potential answers are:

A: $32357

B: $20295

C: $53755

D: $25200

E: $8077

3. What would be the cost of the policy when the trade is free if the rate time exceeds 5 seconds ? (a 50% improvement in service.)

The potential answers are:

A: $98403

B: $209285

C: $284605

D: $210995

E: $231477

4. The new daily cost to Ameritrade (due to 50% improvement in service) is how many times of the original cost?

The potential answers are:

A: 9.02 times.

B: 12.18 times.

C: 5.29 times.

D: 8.37 times.

E: 8.17 times.