Tommy Prothro,a Marketing Manager for Golden Snack Bars,has Commissioned Marketing

question 28

Multiple Choice

Tommy Prothro,a marketing manager for Golden Snack Bars,has commissioned marketing research to determine if one recipe of snack bar is superior to another recipe.More than 400 persons who were "snack bar eaters" were involved in taste tests and,after tasting both recipes,they were asked which recipe they would purchase the next time they purchased snack bars.Tommy is now looking at the data and he sees that recipe A had 53 percent stating a preference whereas recipe B had 47 percent.Tommy's brand manager felt this was "significant" evidence that the firm should produce recipe A.But Tommy wanted more evidence so he asked the research firm to run a test to determine if there was a significant difference between the two recipes.When the firm ran the test,they reported a z value of 5.64.This means that:

• A)Tommy should follow the advice of his brand manager.
• B)there is no statistical significance.
• C)there is no statistical difference but there is an actionable difference.
• D)there is no statistical difference but there is a meaningful difference.
• E)there are real differences between the two recipe preferences in the population and Tommy will have to determine if this difference is meaningful before going further.

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Definitions:

Annual Net Cash Inflows

The total amount of cash received minus cash expenses over a year.

Net Present Value

The discrepancy in the present valuation of incoming and outgoing cash flows within a certain timeframe.

Useful Life

The estimated duration of time a fixed asset is considered to be productive for its intended use.

Working Capital

is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.