A company is advertising a product it produces. The management places an advertisement in newspapers, and a

Question:

A company is advertising a product it produces. The management places an advertisement in newspapers, and a fancy advertisement on TV. The following average figures have been observed. Among 50 potential buyers, one sees an ad in a newspaper and only there, and five see the ad on TV (and perhaps in a newspaper also). Among 10 customers who have seen the ad only in a newspaper, there is only one who actually purchases the product, and among 10 who have seen the TV ad, there are three who purchase the product. At last, among 30 potential buyers who did not see any ad, only one will purchase the product.
Let Mr. Smith be a potential customer.

(a) What is the probability that Mr. Smith will buy the product?

(b) What is the probability that Mr. Smith saw an ad and bought the product?

(c) Given that Mr. Smith has bought the product, do you expect the probability that he has seen the ad on TV to be equal to, or less than, or larger than 0.1? Find this probability.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: