A Direct Marketing Company Believes That the Probability of Making

question 67

True/False

A direct marketing company believes that the probability of making a sale when a call is made to an individual's home is .02. The probability of making 2 or 3 sales in a sample of 20 calls is .0593.

---

Definitions:

External Costs

Costs that are not borne by the producer or consumer but by third parties or society at large, such as pollution or resource depletion.

External Benefit

A positive effect on a party who did not choose to incur that benefit, often associated with public goods or services.

Public‐spirited

Exhibiting a selfless concern for the well-being of the community and the willingness to act for the public good.

Air Pollution

The presence of substances in the atmosphere that are harmful to the health of humans and other living beings or cause damage to the climate or materials.