Reference no: EM131688999

Question: Cinema advertising is increasing. Normally 60 to 90 seconds long, these advertisements are longer and more extravagant, and they tend to have more captive audiences than television advertisements. Thus, it is not surprising that the recall rates for viewers of cinema advertisements are higher than those for television advertisements. According to survey research conducted by the ComQUEST division of BBM Bureau of Measurement in Toronto, the probability a viewer will remember a cinema advertisement is 0.74, whereas the probability a viewer will remember a 30-second television advertisement is 0.37 (N. Hendley, Cinema Advertising Comes of Age, Marketing Magazine, May 6, 2002, p. 16).

a. Is the 0.74 probability reported by the BBM Bureau of Measurement best classified as a priori classical probability, empirical classical probability, or subjective probability?

b. Suppose that 10 viewers of a cinema advertisement are randomly sampled. Consider the random variable defined by the number of viewers who recall the advertisement. What assumptions must be made in order to assume that this random variable is distributed as a binomial random variable?

c. Assuming that the number of viewers who recall the cinema advertisement is a binomial random variable, what are the mean and standard deviation of this distribution?

d. Based on your answer to (c), if none of the viewers can recall the ad, what can be inferred about the 0.74 probability given in the article?