Answer to Question #43757 in Statistics and Probability for Phil McCourt

Question

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:

Points when the consumer books a room online and completes the stay
Points when the consumer makes a purchase in the hotel's restaurants or store
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.

First Deliverable:

Determine the probability of each option being preferred by the consumer.
Determine the probability that an individual consumer will receive a prize over the course of a year.
A