Answer to Question #6743 in Quantitative Methods for Phindile

Question

Suppose you are offered the opportunity of sharing a small stand at a trade fair. The service provided by the stand is to assist job seekers in securing employment. The cost of the stand will be R20000, the cost of promotional material will be R2000, and the partners include a cost of R1000 for their time. The organisers of the fair claim that the likely number of enquiries will average out at 3000. Past exxperience has given a conversion rate of 5% of enquries into actual jobs, and the partners work on an average profit of R200 per job. Assume that the enquries are normally distributed with a standard deviation of 300. Would you take up the offer? Show details of your calculations.