Digital video recorders allow us to skip commercials when watching TV. Some allow advertisers to see which ads are watched. A study used this technology in a sample of 2504 homes in a city. XYZ monitored viewer’s reactions to ABC product ad that featured the band Roq. The ad won critical acclaim, but XYZ found that only 41% of households saw the ad. An analysis indicates that an ad has to be viewed by 40% or more households to be cost effective. Based on this test, should the local sponsor run this ad?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

Digital video recorders allow us to skip commercials when watching TV. Some allow advertisers to see which ads are watched. A study used this technology in a sample of 2504 homes in a city. XYZ monitored viewer’s reactions to ABC product ad that featured the band Roq. The ad won critical acclaim, but XYZ found that only 41% of households saw the ad. An analysis indicates that an ad has to be viewed by 40% or more households to be cost effective. Based on this test, should the local sponsor run this ad?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Point Estimation, Limit Theorems, Approximations, and Bounds
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman