Our annual Grand Ball and Silent Auction will be on October 12th this

(1) Consider each of the following statements. Indicate Yes if the information in the three emails support the statement; otherwise, indicate No.

i. The executive director would rather change to a larger venue than risk exceeding the capacity of the currently-booked venue.
As per 3rd Email - from director to auction coordinator
"If their projections comes out accurate, they will should be fine at original venue."
So, not surety is there to know whether venue will change.

No..

ii. The auction coordinator believes that the charity will be able to reach its goal to raise $250,000 at this year’s event.
As per 2nd Email - from auction coordinator to director
"If this year’s lots go for about the same price on average as it did last year, the auction will be able to raise additional $50,000 needed from remaining 42 auction lots."
So, they will be able to raise 250,000.

YES..

iii. The auction coordinator is certain that the charity has the necessary data to determine how many people to invite in order to maximize attendance while not exceeding the capacity limit.
As per 2nd Email - from auction coordinator to director
"Last year, they invited 1,813 people and only 1,492 accepted. Of those, only 1,378 were able to attend. "
So, the prediction here is on random basis. No true measure to analyse public strength.

No...


(2) For each of the following plans, select Yes if the plan will definitely allow the charity to reach its planned goal to raise $250,000 from the auction and pledges. Otherwise, select No.

i. The charity follows its plan as stated in the emails, maximizing the number of invited guests and achieving the same rates as in the prior year for the pledge money raised per person and the auction money raised per item auctioned. The venue can only have 1098 members to the maximum, we have no rate given to determine the money raised for pledge or auction or whether the auction will shift to new venue. We can't exactly determine whether money will be raised.

No.

ii. The charity moves to a larger venue; 1,500 invited guests attend but the charity is able to offer only 90 items for auction.
The amount charged for pledge and auction lot is unknown. Can't determine the value of the money raised.

No.

iii. The charity maximizes its number of invited guests at the planned venue; it auctions 100 items at an average of $1,300 per item and receives an average of $150 per invited guest in pledges.
Auctioning lots at 1300 each = 100*1300 = 130,000
Maximizing number for smaller venue and charging 150 each = 988(as 10% is staff and other members)
988*150 = 148,200
Adding both = 278,200 , which is greater than 250,000.

Yes.

(3) If the charity is able to raise an average of $1,500 per lot (auctioned item), and assuming that the maximum capacity of the venue will be met, what must be the approximate average pledge per invited guest in order to reach the $250,000 goal?
Auctioning lots at 1500 each = 100*1500 = 150,000
Maximizing number for smaller venue and charging X each = 988(as 10% is staff and other members)
988*x = 988x
Adding both = 150,000+988X , which should be equal to 250,000.

100,000 = 988X
X = 101.21, which is nearest to the value 100.

Answer is B

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