Use the Information Below to Answer the Following Question(s)

question 44

Multiple Choice

Use the information below to answer the following question(s)
Misty Inc. launches a new range of perfumes for men and women. The probability of high consumer demand for the product is 0.6 and low consumer demand is 0.4. The probability of a favorable survey response given high consumer demand is 0.9 and the probability of a favorable survey response given low consumer demand is 0.2.
-A children's welfare fundraiser involves selling one thousand $70 tickets to win a $20,000 grand prize. If the probability of winning is only 0.005, what is the expected payoff?

• A) -$40
• B) -$50
• C) $30
• D) $60

---

Definitions:

Attention Span

The length of time a person can concentrate on a task without becoming distracted, which varies based on factors like age, interest, and environmental conditions.

Hostile Audience

A group of listeners or spectators who are antagonistic or unfriendly towards the speaker or the presented ideas.

Uninterested Audience

A group of listeners or spectators who show a lack of interest or engagement in the subject matter being presented.

Neutral Audience

An audience that is neither strongly in favor of nor against a particular message or speaker at the outset.