An Investment firm offers free financial planning seminars at major hotels for groups of 30 individuals. Each seminar costs them $4,000 and the average first-year commission for each new enrollment is $6,000. The firm estimates that for each individual attending the seminar, there is a 0.05 probability that he/she will enroll.
a. Determine the equation for computing the profit per seminar, given values of the relevant parameters.
b. Construct a spreadsheet simulation model to analyze the profitability of the seminars. Would you recommend the investment firm to continue running the seminars?

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The Answer of An Investment firm offers free financial planning seminars at major hotels for groups of 30 individuals. Each seminar costs them $4,000 and the average first-year commission for each new enrollment is $6,000. The firm estimates that for each individual attending the seminar, there is a 0.05 probability that he/she will enroll.
a. Determine the equation for computing the profit per seminar, given values of the relevant parameters.
b. Construct a spreadsheet simulation model to analyze the profitability of the seminars. Would you recommend the investment firm to continue running the seminars?

An Investment Firm Offers Free Financial Planning Seminars at Major