Mooney, Hileman & Jones, a marketing agency located in Cleveland, has created an advertising campaign for a major retail chain, which the agency’s executives believe is a winner. For an ad campaign to be successful, at least 80% of those seeing a television commercial must be able to recall the name of the company featured in the commercial one hour after viewing the commercial. Before distributing the ad campaign nationally, the company plans to show the commercial to a random sample of 20 people. It will also show the same people two additional commercials for different products or businesses.
a. Assuming that the advertisement will be successful (80% will be able to recall the name of the company in the ad), what is the expected number of people in the sample who will recall the company featured in the Mooney, Hileman & Jones commercial one hour after viewing the three commercials?
b. Suppose that in the sample of 20 people, 11 were able to recall the name of the company in the Mooney, Hileman & Jones commercial one hour after viewing. Based on the premise that the advertising campaign will be successful, what is the probability of 11 or fewer people being able to recall the company name?
c. Based on your responses to parts a and b, what conclusion might Mooney, Hileman & Jones executives make about this particular advertising campaign?