Solve the problem.
-A company adopts an advertising campaign to weekly add to its customer base. It assumes that as an average fifty percent of its new customers, those added the previous week, will bring in one friend, but those who have been customers longer will not be very effective as recruiters and can be discounted. A media campaign brings in 10,000 customers initially. What is the expected total number of customers with whom the company can expect to have dealings?
A) The sum diverges to infinity.
B) 30,000 customers
C) 20,000 customers
D) 15,000 customers

Question

Quizplus · Accepted Answer

The initial 10,000 customers bring in 5,000 new customers (50% of 10,000). These 5,000 bring in 2,500, and so on. This forms a geometric series with a sum of 10,000 / (1 - 0.5) = 20,000 customers.

Solve the Problem. -A Company Adopts an Advertising Campaign to Weekly Add to Weekly