Concept explainers
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
The
What is the probability of an individual's purchasing the product given that the individual recalls seeing the advertisement? Does seeing the advertisement increase the probability that the individual will purchase the product? As a decision maker, would you recommend continuing the advertisement (assuming that the cost is reasonable)?
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? Would you expect that continuing the advertisement will increase the company' s market share? Why or why not?
The company also tested another advertisement and assigned it values of
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Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
- In Example 8, what is the probability that an employee chosen at random has 30 or more years of service?arrow_forwardThe following description of the classic Linda Problem appeared in the New Yorker. In this experiment subjects are told, Linda is thirty-one years old, single outspoken and very bright. She majored in philosophy. As a student, she was deeply concerned with the issue of discrimination and social justice and also participated in antinuclear demonstrations. They are then asked to rank the probability of several possible descriptions of Linda today. Two of them are bank teller and bank teller and active in feminist movement. Many people rank the second event as more likely. Explain why this violates basic concepts of probability. Source: New Yorker.arrow_forward
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