A market study for a particular consumer product reported that your company\'s v

Question

A market study for a particular consumer product reported that your company's version of this product was favored by 20% of prospective purchasers. In response, your company has initiated a new advertising strategy to increase market share and it has been implemented in a test market region. A survey is then conducted in which 600 randomly selected consumers who have seen the new ads are asked for their preference among competing brands for this product. Suppose 25% of those in this sample favor your company's product. (a) If your company's market share remains at 20% with the new ads, approximately what proportion of all possible samples of size 600 would have sample percentages that are at least 25%? (b) If your market share has increased to 30% with the new ads, approximately what proportion of all possible samples of size 600 would have sample percentages that are at least 25%?

Explanation / Answer

a)

proportion of all possible samples of size 600 would have sample percentages that are at least 25%:

b)

for normal distribution z score =(p-p)/p here population proportion=     p= 0.200 sample size       =n= 600 std error of proportion=p=(p*(1-p)/n)= 0.0163

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.