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ExistentlAngst ExistentlAngst
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6 years ago
Suppose that GM earns a 4000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GMs cars. The customer is assumed to buy a new car every five years, for a total of 10 cars through her lifetime. The customer will keep buying GM cars so long as they are satisfied with them. The probability that the customer will be satisfied with her GM car is 80. If she is not satisfied with her GM car, she will buy another brand (well call all other brands cumulatively Toyota). The probability that she is satisfied with Toyota is 85.
  Consider a customer whose first car is GM. If profits are discounted at 10 annually, use simulation to estimate the value of this customer to GM over the customers lifetime.
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garyrangel12garyrangel12
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ExistentlAngst Author
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6 years ago
Correct Slight Smile TY
Ivansitospeed@g
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This site is awesome
Fleury
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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