Average trade time in Ameritrade is 5 second. Ameritrade has promised its customers if trade time exceeds 25 second it is free (a $9.99 cost saving for the customer.) There are 135000 average daily trades.

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

The potential answers are:

A: 98.99%

B: 97.44%

C: 96.98%

D: 98.77%

E: 99.33%

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

The potential answers are:

A: $39519

B: $12298

C: $8077

D: $32357

E: $9087

3. What would be the cost of the policy when the trade is free if the rate time exceeds 12.5 seconds ? (a 50% improvement in service.)

The potential answers are:

A: $110704

B: $126821

C: $98403

D: $239089

E: $209285

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: 9.97 times.

B: 6.25 times.

C: 5.75 times.

D: 12.18 times.

E: 6.52 times.