1) A company that sells eco-friendly cleaning products is concerned that only 18

Question

1)   A company that sells eco-friendly cleaning products is concerned that only 18.5% of people who  
use such products select their brand. A marketing director suggests that the company invest in new advertising and labeling to strengthen its green image. The company decides to do so in a test market so that the effectiveness of the marketing campaign may be evaluated. Based on data collected in the test market, the company constructed a 98% confidence interval for the proportion of all consumers who might buy their brand. The resulting interval is 18% to 27.5%. What conclusion should the company reach about the new marketing campaign?
A)   None of these
B)   The company should not launch the new marketing campaign.
C)   The data do not provide convincing evidence that the marketing campaign increases the percentage of customers for the company’s products.
D)   The data do provide convincing evidence that the marketing campaign increases the percentage of customers for the company’s products.
E)   The new marketing campaign is not effective in increasing the percentage of customers buying their brand.

Explanation / Answer

As the percentage of 18.5%lie within the confidence interval .therefore there is no increase in the percentage of customers buying their brand.

Option E is correct The new marketing campaign is not effective in increasing the percentage of customers buying their brand.

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