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A large company is planning an advertising campaign for one of its soap products. A member of the marketing team suggested they conduct an initial

A large company is planning an advertising campaign for one of its soap products. A member of the marketing team suggested they conduct an initial survey to determine the current market share of this product.

One hundred people were surveyed and twenty indicated they purchased the company's product.

The company then ran an advertisement for this same soap product. After the advertisement had been run for several months, the company conducted a second survey of another one hundred people. The participants were asked the following two questions and their responses recorded:

"Do you recall seeing the advertisement about this soap product?"

"Have you purchased this soap product?"

  1. What is the probability a person buys the soap product if the individual recalls seeing the advertisement?
  2. Is there evidence that seeing the advertisement increases the probability of an individual purchasing the product? Explain.

People who had recalled the ad: 66

People who had not recalled the ad: 34

People who purchased the soap: 21

People who had not purchased the soap: 79

People who had recalled the ad and bought soap: 9 people

People who had not recalled the ad and bought soap: 12 people

People who had recalled the ad and not bought soap: 25 people

People who had not recalled the ad and not bought soap: 54 people

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