The probability that a new advertising campaign will increase sales is 0.80. The

Question

The probability that a new advertising campaign will increase
sales is 0.80. The probability that the cost of developing the new
ad campaign can be kept within the original budget allocation is
0.5. Assuming that the two events are independent, the probability
that the cost is kept within budget or that the campaign will
increase sales is ______.

For question A to C which one of the following sampling methods best matches the
description? Explain your choice.
A) Stratified

B) Simple Random

C) Cluster

D) Systematic
Answer and Explanation

a) Citibank wants to survey its employees. 25 branches are randomly selected and all of the employees in those branches are given the survey.
b) From a list of all Walmart employees, the research staff divides the list into full-timers and part-timers and randomly selects a sample of 500 from each group.
c) Each morning, Mission Motors uses a random number generator to select the first car for inspection and then inspects every 15th car coming off the production line for possible defects.

2) A business owner is starting a new ad campaign. She decides
to advertise for 4 months as long as the monthly revenue for her
business results in a profit. She will stop advertising as soon as the
monthly revenue does not result in a profit.
Let P = profit; Let N = no profit.
What is the sample space for this situation?

3) The correlation (r) between Variable A and Variable B = 0. Does
this mean that no relationship exists between A and B? Explain
your answer

Explanation / Answer

1) Assume probbailitities of two eent sto be independent, the probbaility of cost is within budget or campaign will increase sale is 0.80+0.05=0.85

2) a) Simple random: Set of n elements of population has equal chance of selection. 25 branches of Citibank are randomly selected and all the employees were surveyed.

b) Stratified: Population i sdivided into sub population or strata (full timers and part timers) and random samples are drawn from each stratum (500 samples from each group).

c) Systematic: Sample drawn by selecting individuals systematically (first car is selected through random number generator and then 15 th car is selected) from sampling frame, when there is no relation between order of sampling frame and thevariables of interest.

3) Sample space:{P,NP},

4) The value of correlation is from -1 to +1. The value of r=0, indicates there is weakest linear relationship between A and B.

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