Seas Beginning sells clothing by mail order. An important question is when to strike a customer from their mailing list. At present, they strike a customer from their mailing list if a customer fails...

Seas Beginning sells clothing by mail order. An important question is when to strike a customer from their mailing list. At present, they strike a customer from their mailing list if a customer fails to order from six consecutive catalogs. They want to know whether striking a customer from their list after a customer fails to order from four consecutive catalogs will result in a higher profit per customer. The following data are available:

■ If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog.

■ If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives.

■ If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives.


■ If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives.


■ If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives.


■ If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives.

 It costs $1 to send a catalog, and the average profit per order is $15. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?