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 neither the cost is kept within budget nor the campaign will increase sales is:
A)0.12
B)0.32
C)0.68
D)0.88

Question

Quizplus · Accepted Answer

The probability that neither event occurs is found by multiplying the probabilities of their complements together. The complement of increasing sales is 1 - 0.80 = 0.20, and the complement of staying within budget is 1 - 0.40 = 0.60. Multiplying these together gives 0.20 * 0.60 = 0.12.

The Probability That a New Advertising Campaign Will Increase Sales