A Marketing Research Consultant Hired by Red Bull^® Is Interested

question 24

Essay

A marketing research consultant hired by Red Bull^® is interested in determining if the proportion of customers who prefer Red Bull^® to other energy drink brands is over 50%. A random sample of 200 consumers was selected from the market under investigation, 55% favored Red Bull^® over other brands. Additional information is presented below.
-(A) If you were to conduct a hypothesis test to determine if greater than 50% of customers prefer Red Bull^® to other brands, would you conduct a one-tail or a two-tail hypothesis test? Explain your answer.
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(B) How many customers out of the 200 sampled must have favored Red Bull^® in this case?
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(C) Using a 5% significance level, can the marketing consultant conclude that the proportion of customers who prefer Red Bull^® exceeds 50%? Explain your answer.
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(D) If you were to use a 1% significance level, would the conclusion from (C) change? Explain your answer.

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The monthly shedding of the uterine lining in women and female mammals, accompanied by bleeding.

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The process of making an approximate calculation or judgment about a quantity or value, often without exact data.

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A medical procedure in which a small section of tissue is removed from the cervix for examination under a microscope to detect abnormalities or disease.

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A specialized facility for preparing and examining tissues under a microscope to study the structure and function of cells, often for medical diagnosis.