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Some confusion - Is this a Hypothesis question?

 
 
Reply Tue 19 Feb, 2019 01:23 pm
I require some direction on this question please <<Suppose you are offered an opportunity of sharing a small stand at a trade fair. The service provided by the stand is to assist job seekers in securing employment. The cost of the stand will be $5000, the cost of promotional material will be $500, and the partners include a cost of $300 for their time. The organizers of the fair claim that the likely number of inquiries will average out at 3000. Past experience has given a conversion rate of 5% of inquiries into actual jobs, and the partners work on an average profit of $50 per job. Assume that the inquiries
are normally distributed with a standard deviation of 300. Would you take up the offer? Show details of your calculations.>>
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Reply Tue 19 Feb, 2019 02:57 pm
@webster111,
1) Compute the break even cost from your expenses.
2) Determine how many inquiries you will need to have to meet the break even cost. Let's say that is X.
3) Find the Z score for X given that the mean is 3000 and the standard deviation is 300.
4) Use that Z score to find out the probability of breaking even.
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