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Althoff and Roll, an investment firm in Augusta, Georgia,

Basic Statistics for Business and Economics | 7th Edition | ISBN: 9780077384470 | Authors: Douglas Lind; William Marchal; Samuel Wathen ISBN: 9780077384470 64

Solution for problem 61E Chapter 5

Basic Statistics for Business and Economics | 7th Edition

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Basic Statistics for Business and Economics | 7th Edition | ISBN: 9780077384470 | Authors: Douglas Lind; William Marchal; Samuel Wathen

Basic Statistics for Business and Economics | 7th Edition

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Problem 61E

Althoff and Roll, an investment firm in Augusta, Georgia, advertises extensively in the Augusta Morning Gazette, the newspaper serving the region. The Gazette marketing staff estimates that 60 percent of Althoff and Roll’s potential market read the newspaper. It is further estimated that 85 percent of those who read the Gazette remember the Althoff and Roll advertisement.

a. What percent of the investment firm’s potential market sees and remembers the advertisement?

b. What percent of the investment firm’s potential market sees, but does not remember the advertisement?

Step-by-Step Solution:

Step 1 of 3:

Here 60 percent of Althoff and Roll’s potential market read the newspaper.

And 85 percent of those who read the Gazette remember the Althoff and Roll advertisement.

We have to find that what percent of the investment firm’s potential market sees and remembers the advertisement.We have to find what percent of the investment firm’s potential market sees, but does not remember the advertisement.

Step 2 of 3:

Let us define the events:

A: { the potential market read the newspaper}

B: { the people remember the Althoff and Roll advertisement}

From the given informations:

       

                                                           P(A)= 0.60

                                                      P(B/A) = 0.85

 

(a)

By the definition of conditional probability,

                                                     P(B/A) = .

So the percent of the investment firm’s potential market sees and remembers the advertisement.

                                              P(BA)= P(A)P(B/A)

                                                                = 0.600.85

                                                                = 0.51

Therefore, the percent of the investment firm’s potential market sees and remembers the advertisement is 0.51.

Step 3 of 3

Chapter 5, Problem 61E is Solved
Textbook: Basic Statistics for Business and Economics
Edition: 7
Author: Douglas Lind; William Marchal; Samuel Wathen
ISBN: 9780077384470

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