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No Bite insect repellent is being introduced in the market. The manufacturer expects 15% of Population in Swampville (20000 Population) to try the new product in its first year in the market, purchasing an average of 1.1 CAN each on first purchase of those who try the product, 25% will make an average of 2 additional purchases during the first year, purchasing the average of 1.6 CANS per repeat transaction. How many CANS of No Bite can the manufacturer expect to sell in Swampville?
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30 Aug 2017, 06:22
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15 % of population will try a product, purchasing an average of 1.1 can each: (20,000 people x 0.15) x 1.1 can = 3,000 people x 1.1 can = 3,300.
Out of these 3,000, 25% will purchase again twice at an average of 1.6 cans: (3,000 people x 0.25) x 2 purchases x 1.6 cans = 750 x 3.2 = 2.400
Total 3,300 + 2,400 = 5,700
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