A company that has a 10% market share (they sell their product to 10% of all potential buyers) launches a marketing campaign. At the end of the campaign period, the company conducts a survey in order to assess whether its market share has increased. The result of the survey issued to 500 customers was 12.5%. h0= p=0.10, h1= p>0.10 test statistic= 1.86 P value= 0.0314 a. State your conclusion using ΅ = 0.05. b. What would be the potential Type I and Type II errors in this problem? Explain these possible errors in context.
A company that has a 10% market share (they sell their product to 10% of all potential buyers) launches a marketing campaign. At the end of the campaign period, the company conducts a survey in order to assess whether its market share has increased. The result of the survey issued to 500 customers was 12.5%. h0= p=0.10, h1= p>0.10 test statistic= 1.86 P value= 0.0314 a. State your conclusion using ΅ = 0.05. b. What would be the potential Type I and Type II errors in this problem? Explain these possible errors in context.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
A company that has a 10% market share (they sell their product to 10% of all potential buyers) launches a marketing campaign. At the end of the campaign period, the company conducts a survey in order to assess whether its market share has increased. The result of the survey issued to 500 customers was 12.5%.
h0= p=0.10, h1= p>0.10
test statistic= 1.86
P value= 0.0314
a. State your conclusion using ΅ = 0.05.
b. What would be the potential Type I and Type II errors in this problem? Explain these possible errors in context.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman