The Marketing Manager for an Automobile Manufacturer Is Interested in Determining

question 36

Multiple Choice

The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who would have purchased a passenger-side inflatable air bag if it had been available for an additional cost of $300. The manager believes from previous information that the proportion is 0.30. Suppose that a survey of 200 new compact-car owners is selected and 79 indicate that they would have purchased the inflatable air bags. If you were to conduct a test to determine whether there is evidence that the proportion is different from 0.30 and decided not to reject the null hypothesis, what conclusion could you draw?

• A) There is not sufficient evidence that the proportion is not 0.30.
• B) There is not sufficient evidence that the proportion is 0.30
• C) There is sufficient evidence that the proportion is 0.30.
• D) There is sufficient evidence that the proportion is 0.30

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money, affecting the economy over time.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Average Cost

The total cost of goods available for sale divided by the number of items available for sale, used to determine the cost of goods sold and ending inventory.

Declining Prices

A situation where prices of goods, securities, or commodities decrease over time due to various factors like market oversupply, low demand, or economic downturns.