Question

Two Malaysian brewers, A and B have recently conducted aggressive advertising campaigns in order to maintain and possibly increase their respective shares of the market for beer. These two brewers enjoy a dominant position in the beer market. Before the advertising campaigns began, the market share of company A was 45% while B had 40% of the beer market. Other competitors accounted for the remaining 15%. To determine whether these market shares changed after the advertising campaign, a marketing analyst solicited the preferences of a random sample of 200 beer consumers. Of the 200 consumers, 102 indicated a preference for company A’s beer, 82 preferred company B’s beer and the remaining 16 preferred the beer of one of the other competitors. Can the analyst infer at the 5% significance level that the beer consumers’ preferences have changed from the levels they were at before the advertising campaigns were launched.

Answer 1