Question

The probability that a new advertising campaign will increase sales is asssessed as being 0.80. The probabliity that the cost of devolping the new add 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 withing budget and the campain will increase sales is

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

Answer 1

Answer: B) 0.32

Explanation:

We know that , when two events A and B are independent , then

P(A and B) = P(A) x P(B)

Given : Probability that a new advertising campaign will increase sales is assessed as being = 0.80.

Probability that the cost of devolving the new add campaign can be kept within the original budget allocation = 0.40

Since the two events are independent, then probability that the cost is kept withing budget and the campaign will increase sales =
`0.80*0.40=0.32`

Hence, the probability that the cost is kept withing budget and the campain will increase sales is 0.32 .