The Probability That a New Advertising Campaign Will Increase Sales

question 12

Multiple Choice

The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, the probability that the cost is kept within budget or the campaign will increase sales is

• A) 0.20.
• B) 0.32.
• C) 0.68.
• D) 0.88.

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Definitions:

Expert Power

The influence one possesses due to their skills, experience, or knowledge in a specific area.

Rational Persuasion

A method of influence involving the use of logical arguments and factual evidence to convince others of a viewpoint or to persuade them to take a particular action.

Referent Power

A form of influence based on the leader's personal traits, attracting followers who identify with or admire the leader.

Exchange

The act of trading goods, services, or ideas between two parties.