When Surveyed for Brand Recognition, 98% of Consumers Recognize Coke

question 27

Multiple Choice

When surveyed for brand recognition, 98% of consumers recognize Coke. A new survey of 800 randomly selected consumers is to be conducted. For such a group of 800, determine the mean and standard deviation for the number who recognize the Coke brand name. Considering as unusual a result that differs from the mean by more than two standard deviations, it ( (is/is not) ) unusual to get 775 consumers who recognize the Coke brand name.

• A) 16, 3.96, is not
• B) 16, 16, is
• C) 784, 3.96, is
• D) 874, 16, is not
• E) None of the choices are correct

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Definitions:

Stock Offering

The process by which a company issues shares of its stock to raise capital, either through an initial public offering (IPO) or a secondary offering.

Annual Dividend

The yearly sum of dividends paid per share by a company to its shareholders.

Required Return

The minimum expected return an investor seeks for holding a particularly risky investment.

Stock Purchase

The act of buying shares of a company through a stock market or directly, granting the purchaser a portion of ownership in the company.