Answer to Question #11321 in Statistics and Probability for Gabriella Papatzimas
The hotel was convinced by your presentation and has hired SPI to help with its new incentives program. It has focused on 3 options for incentives: 1. Points when the consumer books a room online and completes the stay 2. Points when the consumer makes a purchase in the hotel's restaurants or store 3. Entry into a sweepstakes whenever the consumer stays a night. If the hotel chooses option C (the sweepstakes entry), it will award a prize to 1 in every 1,000 nights stayed. Based on the frequency that consumers stay at least 1 night, your team estimates that consumers will stay an average of 25 nights a year.The hotel has asked you to write a report that determines the probability of each option being preferred by the consumer as well as the probability of an individual consumer receiving a prize over the course of a year.1. Determine the probability of each option being preferred by the consumer.
2. Determine the probability that an individual consumer will receive a prize over the course of a year.