The Probability That a New Advertising Campaign Will Increase Sales

question 61

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 and the campaign will increase sales is:

• A) 0.20
• B) 0.32
• C) 0.40
• D) 0.88

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Definitions:

Sample Size

Refers to the number of observations or data points collected from a population for the purpose of statistical analysis, influencing the accuracy of the results.

Pooled Proportion

A method used to combine the proportions from different groups in statistical analysis to obtain a common proportion.

Test Statistic

A value calculated from sample data during a hypothesis test that is used to decide whether to reject the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.