A market-research firm was hired to determne the percentage of people in a market area who would purchase a
client’s magazine if a door-todoor sales campaign were undertaken. The firm stated that 40% would buy if contacted at home. If the marketing company tried the sales campaign at 300 randomly selected homes and assuming the market research was done properly and the 40% is reprensatitive how many sales are expected if the publisher attempts to sell to 5,000 homes?
If the market research was accurate what is the probablity that fewer than 100 individuals will buy? use the approximation to the binomial.
Suppose that the publisher actually sells the magazine to 70 people out of the 300 contacted.What would you conclude about the market research? About the campaign?
Statistics and Probability