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According to literature on brand loyalty, consumers who are loyal to a brand are

ID: 3176490 • Letter: A

Question

According to literature on brand loyalty, consumers who are loyal to a brand are likely to consistently select the same product. This type of consistency could come from a positive childhood association. To examine brand loyalty among fans of the Chicago Cubs, 371 Cubs fans among patrons of a restaurant located in Wrigleyville were surveyed prior to a game at Wrigley Field, the Cubs' home field. The respondents were classified as "die-hard fans" or "less loyal fans." The study found that 66.9% of the 136 die-hard fans attended Cubs games at least once a month, but only 18.7% of the 235 less loyal fans attended this often. Analyze these data using a significance test for the difference in proportions. (Let D = pdie-hard pless loyal. Use = 0.05. Round your value for z to two decimal places. Round your P-value to four decimal places.)


Analyze these data using a 95% confidence interval for the difference in proportions. (Round your answers to three decimal places.)

(____, ____)

z = P-value =

Explanation / Answer

n1= 136

n2=235

p1=.669

p2=.187

P=(n1p1+n2p2)/(n1+n2)

=0.3636

Q= 1-P

= 0.6464

e^2= PQ(((1/n1)+(1/n2))

= .002684

e=0.05181

p1-p2=0.482

z=(p1-p2)/e

=9.303

For large samples , if Z>3, the diff between p1 and p2 is real 1

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