Exercise

# Purchase Flow

After signups, let's model the revenue generation process. Once the customer has signed up, they decide whether or not to purchase - a natural candidate for a binomial RV. Let's assume that 10% of signups result in a purchase.

Although customers can make many purchases, let's assume one purchase. The purchase value could be modeled by any continuous RV, but one nice candidate is the exponential RV. Suppose we know that purchase value per customer has averaged around $1000. We use this information to create the `purchase_values`

RV. The revenue, then, is simply the sum of all purchase values.

The variables `ct_rate`

, `su_rate`

and the function `get_signups()`

from the last exercise are pre-loaded for you.

Instructions

**100 XP**

- Model
`purchases`

as a binomial RV with`p=0.1`

. - Model
`purchase_values`

as an exponential RV`scale=1000`

and the appropriate`size`

. - Append
`rev`

with the sum of`purchase_values`

.