Two agents, call them A and B, make sales calls each day. We have computed the probability of each agent making a sale on any given call. For agent A, it is 0.4 (that is, 40% of the time she makes a sale on a call). For agent B, it is 0.2 (that is, 20% of the time she makes a sale on a call). In order to make 1 sale in the next hour, should agent A make 3 calls, or 5 calls? And in order to make 1 sale in the next hour, should agent B make 3 calls, or 5 calls? In your answer, be sure to do the following: a. Explain what an experiment with a binomial distribution is (be sure to mention what trials are, and what the possible outcomes of the experiment are). b. Explain how to build a PDF table for a binomial experiment, and explain the formula one uses to calculate the probability for each outcome. c. Explain how to interpret the agents’ scenario as a binomial experiment. d. Calculate (and report) the probability of agent A making 1 sale in 3 calls, and 1 sale in 5 calls, and use that to make a decision about whether agent A should make 3 calls or 5 calls in the next hour. e. Calculate (and report) the probability of agent B making 1 sale in 3 calls, and 1 sale in 5 calls, and use that to make a decision about whether agent B should make 3 calls or 5 calls in the next hour. f. Explain why agent A and B should each make a different number of calls in the next hour.
