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?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 42PFA
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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?

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