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:

Price Increase

A rise in the cost of goods or services.

Snow Storm

A weather event characterized by heavy snowfall and often leading to significant disruptions, such as transportation delays and infrastructure damage.

Perceived Importance

The level of significance or value that an individual or group assigns to a particular item, issue, or activity.

Salience

The quality of being particularly noticeable or important; in economics, it refers to how prominent or relevant a factor is in decision-making processes.