The Probability That a New Advertising Campaign Will Increase Sales

question 123

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.If the two events are independent,the probability that the cost is kept within budget and the campaign will increase sales is:

• A)0.20
• B)0.32
• C)0.40
• D)0.88

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Definitions:

Uncontrollable Costs

Expenses over which a manager or business has no direct control, often determined by external factors.

Production Manager

A professional responsible for overseeing the production process within a manufacturing facility, ensuring that goods are produced efficiently, safely, and meet quality standards.

Responsibility Centre

A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.

Controllable

Refers to costs or factors within a business that can be managed or influenced by decisions made by the company.