Question

A consumer products firm has recently introduced a new brand. The firm would like to estimate the proportion of people in its target market segment who are aware of the new brand. As part of a larger market research study, it was found that in a sample of 125 randomly selected individuals from the target market segment, 84 individuals were aware of the firm’s new brand.

The manager in charge of the new brand has stated that the brand awareness is greater than 0.75, meaning that more than 75% of the population is aware of the brand. At the 5% significance level, conduct a hypothesis test with the goal of proving his claim.

a. Specify the null hypothesis and the alternative hypothesis. State whether you are using a one- or two-tailed test and explain your reasoning.

b. Conduct calculations by hand to compute the critical value and p-value of the test. Determine your decision using two methods, the rejection region and the p-value approach.

Answer #1

AnnoyCo, a large consumer products firm, has recently introduced a
new product. As part of the launch, 25% of the customers in the
company’s data base received calls from AnnoyCo’s telemarketers. It
is now one year after the launch. 40% of the customrs in the
company’s database have purchased the product, A recent survey by
the company’s marketing department has determined that among
customers who bought the product, one out of eight were called.
Q: Did telemarketing help the company’s...

B&B has a new baby powder ready to market. If the firm goes
directly to the market with the product, there is only a 55 percent
chance of success. However, the firm can conduct customer segment
research, which will take a year and cost $1.12 million. By going
through research, the company will be able to better target
potential customers and will increase the probability of success to
70 percent. If successful, the baby powder will bring a present
value...

The Coca-Cola Company introduced New Coke in 1985. Within three
months of this introduction, negative consumer reaction forced
Coca-Cola to reintroduce the original formula of Coke as Coca-Cola
Classic. Suppose that two years later, in 1987, a marketing
research firm in Chicago compared the sales of Coca-Cola Classic,
New Coke, and Pepsi in public building vending machines. To do
this, the marketing research firm randomly selected 10 public
buildings in Chicago having both a Coke machine (selling Coke
Classic and...

The Coca-Cola Company introduced New Coke in 1985. Within three
months of this introduction, negative consumer reaction forced
Coca-Cola to reintroduce the original formula of Coke as Coca-Cola
Classic. Suppose that two years later, in 1987, a marketing
research firm in Chicago compared the sales of Coca-Cola Classic,
New Coke, and Pepsi in public building vending machines. To do
this, the marketing research firm randomly selected 10 public
buildings in Chicago having both a Coke machine (selling Coke
Classic and...

A market research firm used a sample of individuals to rate the
purchase potential of a particular product before and after the
individuals saw a new television commercial about the product. The
purchase potential ratings were based on a 0 to 10 scale, with
higher values indicating a higher purchase potential (meaning
people were more likely to buy the product after seeing the
commercial). The null hypothesis stated that the mean rating
“after” seeing the commercial would be less than...

A market research firm used a sample of individuals to rate the
purchase potential of a particular product before and after the
individuals saw a new television commercial about the product. The
purchase potential ratings were based on a 0 to 10 scale, with
higher values indicating a higher purchase potential. The null
hypothesis stated that the mean rating "after" would be less than
or equal to the mean rating "before." Rejection of this hypothesis
would show that the commercial...

Using traditional methods it takes 105 hours to receive an
advanced driving license. A new training technique using Computer
Aided Instruction (CAI) has been proposed. A researcher used the
technique on 150 students and observed that they had a mean of 104
hours. Assume the population standard deviation is known to be 5.
Is there evidence at the 0.05 level that the technique performs
differently than the traditional method?
Step 1 of 6: State the null and alternative hypotheses.
Step...

Using traditional methods it takes 101 hours to receive an
advanced flying license. A new training technique using Computer
Aided Instruction (CAI) has been proposed. A researcher used the
technique on 160 students and observed that they had a mean of 100
hours. Assume the population standard deviation is known to be 6 .
Is there evidence at the 0.02 level that the technique performs
differently than the traditional method?
Step 1 of 6: State the null and alternative hypotheses....

A market research firm used a sample of individuals to rate the
purchase potential of a particular product before and after the
individuals saw a new, expensive television commercial about the
product. The purchase potential ratings were based on a 0 to 10
scale, with higher values indicating more potential to purchase the
product. You want to know if the commercial increased the mean
purchase potential rating. You will test the claim at a
significance level of αα = 0.002. To...

Sears uses millions of batteries each year for its surveillance
cameras . The brand of battery it currently uses has a mean life of
400 hours. A competitor claims that its batteries, which cost the
same as the brand Sears currently uses, have a mean life of more
than 400 hours. Sears has decided to purchase the new brand if,
when tested, the evidence supports the manufacturer's claim at .05
significance level. Suppose 49 batteries were tested with the
following...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 28 minutes ago

asked 31 minutes ago

asked 46 minutes ago

asked 50 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago