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 or the campaign will increase sales is:
A)0.20
B)0.32
C)0.68
D)0.88

Question

Quizplus · Accepted Answer

The probability that at least one of two independent events occurs is 1 minus the probability that neither occurs. The probability that neither occurs is the product of their complements: (1 - 0.80) * (1 - 0.40) = 0.20 * 0.60 = 0.12. Therefore, the probability that at least one occurs is 1 - 0.12 = 0.88.

The Probability That a New Advertising Campaign Will Increase Sales