Exhibit 5-11

question 4

Multiple Choice

Exhibit 5-11.For a particular clothing store,a marketing firm finds that 16% of $10-off coupons delivered by mail are redeemed.Suppose six customers are randomly selected and are mailed $10-off coupons. Refer to Exhibit 5-11.What is the expected number of coupons that will be redeemed?

• A)0.81
• B)0.96
• C)3.42
• D)5.04

Grasp the basic principles of marginal revenue and marginal cost in different operational contexts.

Understand the relationship between demand uncertainty and pricing strategy.

Analyze strategies to minimize product cannibalization.

Apply microeconomic principles to optimization problems in business (e.g., parking spaces, product pricing).

---

Definitions:

Successful Communication

The effective exchange of information where the intended message is accurately understood by the recipient.

Element of Persuasion

An element of persuasion is a component or technique used in communication to influence or convince others to accept a point of view, adopt a behavior, or make a decision.

Objective Description

A factual and unbiased presentation of information or characteristics without the influence of personal feelings or interpretations.

Resistance Expected

Anticipating opposition or pushback to a proposal, idea, or change, often considered in strategic planning.