# Question: An advertising agency conducted an ad campaign aimed at making

An advertising agency conducted an ad campaign aimed at making consumers in an Eastern state aware of a new product. Upon completion of the campaign, the agency claimed that 20 percent of consumers in the state had become aware of the product. The product’s distributor surveyed 1,000 consumers in the state and found that 150 were aware of the product.

a. Assuming that the ad agency’s claim is true:

(1) Verify that we may use the normal approximation to the binomial.

(2) Calculate the mean, m, and the standard deviation, s, we should use in the normal approximation.

(3) Find the probability that 150 or fewer consumers in a random sample of 1,000 consumers would be aware of the product.

b. Should the distributor believe the ad agency’s claim? Explain.

a. Assuming that the ad agency’s claim is true:

(1) Verify that we may use the normal approximation to the binomial.

(2) Calculate the mean, m, and the standard deviation, s, we should use in the normal approximation.

(3) Find the probability that 150 or fewer consumers in a random sample of 1,000 consumers would be aware of the product.

b. Should the distributor believe the ad agency’s claim? Explain.

**View Solution:**## Answer to relevant Questions

In order to gain additional information about respondents, some marketing researchers have used ultraviolet ink to precode questionnaires that promise confidentiality to respondents. Of 205 randomly selected marketing ...Repeat Exercise 6.48 with λ= 3 In Exercise 6.48 Suppose that the random variable x has an exponential distribution with 2. a. Write the formula for the exponential probability curve of x. What are the possible values of x? ...Consider the sample of 12 incomes given in Example 3.2 (page 103). a. Sort the income data from smallest to largest, and compute i (n 1) for each observation. b. Compute the standardized normal quantile value O i for each ...A consensus forecast is the average of a large number of individual analysts’ forecasts. Suppose the individual forecasts for a particular interest rate are normally distributed with a mean of 5.0 percent and a standard ...Suppose the waiting time to get food after placing an order at a fast- food restaurant is exponentially distributed with a mean of 60 seconds. If a randomly selected customer orders food at the restaurant, what is the ...Post your question