TABLE 8-6 After an Extensive Advertising Campaign, the Manager of a Company

question 159

True/False

TABLE 8-6
After an extensive advertising campaign, the manager of a company wants to estimate the proportion of potential customers that recognize a new product. She samples 120 potential consumers and finds that 54 recognize this product. She uses this sample information to obtain a 95% confidence interval that goes from 0.36 to 0.54.
-Referring to Table 8-6, 95% of the time, the proportion of people that recognize the product will fall between 0.36 and 0.54.

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Definitions:

Period Costs

Selling and administrative expenses incurred in marketing the product, delivering the product, or managing the company and not directly related to manufacturing the product.

Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced or sold.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor costs.

Variable Cost

Spending that rises and falls according to how much is produced or sold, including costs for labor and materials.