Question

Cold Calls. Justine works for an organization committed to raising money for Alzheimer’s research. 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

Answer:She will have to contact a 100 persons.

Explanation:

Working backwards, 5% of the potential 20% of donors would give more than or equal to a $100. So,

The probability of a donor giving a $100 or more = 5% * 20%

=5/100 * 20/100 = 0.01 =1%

So on average 1% of the total population called would be $100 donor. So she would need to call a 100 persons on average to get that 1 person.