TABLE 9-7 A Major Home Improvement Store Conducted Its Biggest Brand Recognition

question 99

True/False

TABLE 9-7
A major home improvement store conducted its biggest brand recognition campaign in the company's history. A series of new television advertisements featuring well-known entertainers and sports figures was launched. A key metric for the success of television advertisements is the proportion of viewers who "like the ads a lot." A study of 1,189 adults who viewed the ads reported that 230 indicated that they "like the ads a lot." The percentage of a typical television advertisement receiving the "like the ads a lot" score is believed to be 22%. Company officials wanted to know if there is evidence that the series of television advertisements are less successful than the typical ad (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance.
-Referring to Table 9-7, the company officials can conclude that there is sufficient evidence to show that the series of television advertisements are less successful than the typical ad using a level of significance of 0.05.

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Definitions:

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Sales

The total amount of goods or services sold by a company, a primary source of revenue for businesses.

Net Income

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

Debt Ratio

A financial ratio that measures the proportion of a company's assets that are financed by debt.