Gisle considers subscribing to GeeGee Mobile which would get her a new phone if she chose...

 

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Gisèle considers subscribing to GeeGee Mobile which would get her a new phone if she chose the annual "Choose my mins" plan: she would pay $5 per month and commit to a limited number of minutes per month, say x, for 5 ¢ ($0.05) per minute. If she used less than x minutes during the month, she would lose the excess (there are no rollover minutes to the next month). On the other hand, if she spoke more than x minutes during the month, she would pay 40¢ ($0.40) per excess minute. Once engaged, Gisèle will no longer be able to modify the value of x. She expects her monthly usage to follow the following distribution (the right column represents the cumulative distribution): If Gisèle chose the "Choose my mins" plan, use the vendor model to estimate the number of minutes to include in the contract. Include reasoning. NB: If the answer was between two thresholds, we would report these (and we would not interpolate). GeeGee Mobile also offers the "No Minimum" plan with a new phone and a fixed cost of $5 per month, but with no minimum required. With this plan, Gisele could talk as much as she wants for 7¢ ($0.07) per minute. Gisèle hesitates between "Choose my mins" and "Without Minimum". Which do you recommend to him? Include reasoning. Gisèle considers subscribing to GeeGee Mobile which would get her a new phone if she chose the annual "Choose my mins" plan: she would pay $5 per month and commit to a limited number of minutes per month, say x, for 5 ¢ ($0.05) per minute. If she used less than x minutes during the month, she would lose the excess (there are no rollover minutes to the next month). On the other hand, if she spoke more than x minutes during the month, she would pay 40¢ ($0.40) per excess minute. Once engaged, Gisèle will no longer be able to modify the value of x. She expects her monthly usage to follow the following distribution (the right column represents the cumulative distribution): If Gisèle chose the "Choose my mins" plan, use the vendor model to estimate the number of minutes to include in the contract. Include reasoning. NB: If the answer was between two thresholds, we would report these (and we would not interpolate). GeeGee Mobile also offers the "No Minimum" plan with a new phone and a fixed cost of $5 per month, but with no minimum required. With this plan, Gisele could talk as much as she wants for 7¢ ($0.07) per minute. Gisèle hesitates between "Choose my mins" and "Without Minimum". Which do you recommend to him? Include reasoning.

Answer rating: 100% (QA)

Based on the given information it appears that Gisle is considering subscribing to a mobile phone plan offered by a company called GeeGee Mobile One o... View the full answer