A large consumer goods company ran a television advertisement for one of its soap products. On the basis of a survey that was conducted, probabilities were assigned to the following events.

B	=	individual purchased the product
S	=	individual recalls seeing the advertisement
B S	=	individual purchased the product and recalls seeing the advertisement

The probabilities assigned were

P(B) = 0.20,

P(S) = 0.50,

and

P(B S) = 0.12.

(a)What is the probability of an individual's purchasing the product given that the individual recalls seeing the advertisement?

P(B | S)= ? (ANSWER HERE)

Does seeing the advertisement increase the probability that the individual will purchase the product? As a decision-maker, would you recommend continuing the advertisement (assuming that the cost is reasonable)?

I ---(a. would, b. would not) --- recommend continuing the advertisement, since it ---(a. increases, b. decreases, c. does not change)--- the probability of a purchase. (ANSWER OPTION QUESTION)

(b) Assume that individuals who do not purchase the company's soap product buy from its competitors. What would be your estimate of the company's market share?

My estimate of the market share is ?%. (ANSWER HERE)

Would you expect that continuing the advertisement will increase the company's market share? Why or why not?

I ---(a. would, b. would not) --- expect the advertisement to increase the company's market share, since

P(B | S) = ?. (ANSWER OPTION AND FILL IN THE BLANK)

(c)The company also tested another advertisement and assigned it values of P(S) = 0.30 and

P(B S) = 0.10. What is P(B | S) for this other advertisement? (Round your answer to three decimal places.)

P(B | S)=? (ANSWER HERE)

Which advertisement seems to have had the bigger effect on customer purchases?

The ---(a. first b. second) --- ad has a bigger effect. (ANSWER OPTION QUESTION