Question

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 or the campaign will increase sales is _________.
Group of answer choices:
a. 0.20b. 0.32c. 0.40d. 0.88

Answer 1

Answer: b. 0.32

Step-by-step explanation:

Probability of under budget and increase sales:

P(under budget and increase sales) = 0.8*0.4 = 0.32