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.If the two events are independent,the probability that the cost is kept within budget and the campaign will increase sales is:
A)0.20
B)0.32
C)0.40
D)0.88

Question

Quizplus · Accepted Answer

If the two events are independent, we can multiply their probabilities to find the probability of both events occurring:

P(cost within budget AND increase in sales) = P(cost within budget) * P(increase in sales)

= 0.40 * 0.80

= 0.32

Therefore, the answer is B.

The Probability That a New Advertising Campaign Will Increase Sales