Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I found a confidence interval of (13500-8180,13500+8180) for part a, but how should i find the probability that revenue is larger than spending? PollIUS oral,

I found a confidence interval of (13500-8180,13500+8180) for part a, but how should i find the probability that revenue is larger than spending?

image text in transcribed
PollIUS oral, o pis each A study was performed of the results of online ad campaigns. The study followed 30 different ad campaigns. The businesses purchasing the ads spent an average of $20,000, with an SD of $5,000. The results of the study estimated that the average campaign produced $30,000 in revenue, and that each additional $1,000 of spending resulted in an additional $1,500 of revenue to the company. The residual standard error from the study was $4,000 a) Your company plans to spend $27,000 on an advertising campaign. Calculate a 95% confidence interval for the net profit you'll get (spending - revenue): b) What is the probability that your ad campaign will be profitable - that is, that revenue will exceed spending

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Probability and Random Processes With Applications to Signal Processing and Communications

Authors: Scott Miller, Donald Childers

2nd edition

123869811, 978-0121726515, 121726517, 978-0130200716, 978-0123869814

More Books

Students also viewed these Mathematics questions