A New Clothing Store Advertises That During Its Grand Opening $$\begin{array} { | l | l | l | l | l | } \hline 10 & 30 & 10 & 30 & 10 \\\hline 20 & 10 & 50 & 10 & 20 \\\hline\end{array}$$

question 9

Essay

A new clothing store advertises that during its Grand Opening every customer that enters the store can throw a bouncy
rubber cube onto a table that has squares labeled with discount amounts. The table is divided into ten regions. Five regions
award a 10% discount, two regions award a 20% discount, two regions award a 30% discount, and the remaining region
awards a 50% discount. Show your work. $$\begin{array} { | l | l | l | l | l | } \hline 10 & 30 & 10 & 30 & 10 \\\hline 20 & 10 & 50 & 10 & 20 \\\hline\end{array}$$
-What is the probability that the first customer to win a 30% discount is the sixth customer
that enters the store?

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Definitions:

Sensitivity Analysis

A financial modeling tool used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Decision Tree Analysis

A graphical technique used for decision-making and risk management, representing different courses of action and their possible outcomes.

Cost Of Capital

The cost of capital represents the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Pure Play

A company that focuses exclusively on a single product or service area.