Cruise with Us Is Running a Promotion to Attract New

question 158

Multiple Choice

Cruise with Us is running a promotion to attract new customers and is offering a free around the world cruise to any customer who can sink a hole in one on a professional golf course located near Cruise with Us' corporate headquarters. The cost of the around the world cruise is $50,000 and Cruise with Us is running the promotion for a month. The probability that a customer can sink a hole in one during the one month period is 5 percent. What is the expected cost of the promotion?

• A)$2,500
• B)$500
• C)$250
• D)$50

---

Definitions:

Issuing Bank Notes

The process by which a central bank or monetary authority prints and distributes the national currency, which serves as legal tender.

Reserve Requirements

Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank, affecting the bank's ability to lend.

Board of Governors

An executive committee or oversight body responsible for setting policies and managing the affairs of an organization, such as a central bank or educational institution.

Bank Acts

Bank Acts are laws and regulations that govern the operations, establishment, and oversight of banks, aiming to ensure their stability and integrity.