The Probability That a New Advertising Campaign Will Increase Sales

question 26

Multiple Choice

The probability that a new advertising campaign will increase sales is estimated to be 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 not kept within budget or the campaign will not increase sales is

• A) 0.12.
• B) 0.68.
• C) 0.32.
• D) 0.88.

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Definitions:

Assembling Cost

The expenses incurred in the process of putting together components or parts to manufacture a finished product.

Units-Of-Production Method

A depreciation method in which an asset's cost is allocated based on the number of units it produces.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life.

Units-Of-Production Method

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.