Average trade time in Ameritrade is 2 second. Ameritrade has promised its customers if trade time exceeds 7 second it is free (a $9.99 cost saving for the customer.) There are 131000 average daily trades.

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

The potential answers are:

A: 97.44%

B: 96.98%

C: 98.77%

D: 97.65%

E: 96.43%

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

The potential answers are:

A: $12298

B: $8077

C: $32357

D: $39519

E: $53755

3. What would be the cost of the policy when the trade is free if the rate time exceeds 3.5 seconds ? (a 50% improvement in service.)

The potential answers are:

A: $126821

B: $98403

C: $227416

D: $209285

E: $284605

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: 6.25 times.

B: 10.31 times.

C: 5.75 times.

D: 6.52 times.

E: 5.29 times.

Flag question: Question 2

Question 228 pts

The daily linear demand curve in an internet store intercepts the price axis at 124 dollars. The slope of the linear demand curve is -1. In Uniform distribution: Mean = (b+a)/2 and Variance = [(b-a)²]/12.

In binomial distribution: Mean = np and Variance = np(1-p).

1. Compute the height, f(x), of the uniform distribution associated with this linear demand curve.

The potential answers are:

A: 0.001603

B: 0.007634

C: 0.001404

D: 0.001773

E: 0.008065

2. Compute the probability of sale if the price is set to 30 dollars.

The potential answers are:

A: 63.14%

B: 77.1%

C: 71.91%

D: 78.72%

E: 75.81%

3. Given the above price of 30 dollars, compute the expected (average) revenue from each individual visitor. The potential answers are:

A: 145.2 dollars.

B: 22.7 dollars.

C: 143.8 dollars.

D: 94.5 dollars.

E: 158.6 dollars.

4. Given the linear demand curve, compute the maximum daily demand (total number of visitors per day).

The potential answers are:

A: 156 units.

B: 131 units.

C: 178 units.

D: 141 units.

E: 124 units.

5. Given the above price of 30 dollars, and the maximum number of visitors per day, compute the average number of units sold per day.

The potential answers are:

A: 94 units.

B: 101 units.

C: 128 units.

D: 111 units.

E: 72.5 units.

6. Given the above price of 30 dollars, compute the average daily total revenue.

The potential answers are:

A: 22655 dollars.

B: 3030 dollars.

C: 25600 dollars.

D: 13320 dollars.

E: 2820 dollars.

7. Given the above price. compute the standard deviation of the number of units sold per day.

The potential answers are:

A: 4.9 units.

B: 4.8 units.

C: 5.1 units.

D: 6.7 units.

E: 5.8 units.