A large consumer goods company ran a television advertisement for one of its soap products. On the basis of a survey that was conducted, probabilities were assigned to the following events. B individual purchased the product S = individual recalls seeing the advertisement BnS = individual purchased the product and recalls seeing the advertisement The probabilities assigned were P(B) = 0.20, P(S) = 0.40, and P(BS) = 0.12. a. What is the probability of an individual's purchasing the product given that the individual recalls seeing the advertisement (to 1 decimal)? Does seeing the advertisement increase the probability that the individual will purchase the product? - Select your answer - As a decision maker, would you recommend continuing the advertisement (assuming that the cost is reasonable)? - Select your answer - b. Assume that individuals who do not purchase the company's soap product buy from its competitors. What would be your estimate of the company's market share (to the nearest whole number)? % Would you expect that continuing the advertisement will increase the company's market share? Why or why not?

A large consumer goods company ran a television advertisement for one of its soap products. On the basis of a survey that was conducted, probabilities were assigned to the following events. B individual purchased the product S = individual recalls seeing the advertisement BnS = individual purchased the product and recalls seeing the advertisement The probabilities assigned were P(B) = 0.20, P(S) = 0.40, and P(BS) = 0.12. a. What is the probability of an individual's purchasing the product given that the individual recalls seeing the advertisement (to 1 decimal)? Does seeing the advertisement increase the probability that the individual will purchase the product? - Select your answer - As a decision maker, would you recommend continuing the advertisement (assuming that the cost is reasonable)? - Select your answer - b. Assume that individuals who do not purchase the company's soap product buy from its competitors. What would be your estimate of the company's market share (to the nearest whole number)? % Would you expect that continuing the advertisement will increase the company's market share? Why or why not?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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