Question

A large consumer goods company ran a television advertisement for one of its soap products.

Answer 1

Answer:

Step-by-step explanation:

Given that a large consumer goods company ran a television advertisement for one of its soap products.

B = individual purchased the product S = individual recalls seeing the advertisement B∩S = individual purchased the product and recalls seeing the advertisement

The probabilities assigned were P(B)=.20,P(S)=.40, and P(B∩S)=.12

a) P(B/S) = $\frac{P(B\bigcap S}{P(S)} \\=\frac{0.12}{0.40} \\=0.30$

Yes we can continue the advt since P(B/A) >P(B)

b)

It is preferable to continue advt as chances of purchase after seeing advt is more than purchase without seeing advt.

c) P(B/S) =$\frac{P(B\bigcap S}{P(S)} \\=\frac{0.1}{0.3} \\=0.3333$

The II advt has the bigger effect since conditional prob is more here.