Question

From past experience, the organization knows that about 20% of all potential donors will agree to give something if contacted by phone. They also know that of all people donating, about 5% will give $100 or more. On average, how many potential donors will she have to contact until she gets her first $100 donor?

Answer 1

Total number of donor who will give first $ 100 = 100 people

Explanation:

Given that:

Total percentage of people who donate when contact by phone 20%

Percentage of donating people who will give $100 or more = 5% = 0.05

Total number of donor who will give first $ 100 can be calculated as

calculate the percentage of donor who will give first $ 100

`P(X) =  0.05* 0.20 = 0.01\ percent`

`\mu_x = (1)/(0.01)`

so, total number of the donor who will give first $ 100 = 100 people