A Company That Sells Eco-Friendly Cleaning Products Is Concerned That

question 10

Essay

A company that sells eco-friendly cleaning products is concerned that only 19.5% of
people who use such products select their brand. A marketing director suggests that the
company invest in new advertising and labeling to strengthen its green image. The
company decides to do so in a test market so that the effectiveness of the marketing
campaign may be evaluated.
A. Write the null and alternative hypotheses.
b. Based on data collected in the test market, the company constructed a 98% confidence
interval for the proportion of all consumers who might buy their brand. The resulting
interval is 16% to 28%. What conclusion should the company reach about the new
marketing campaign? Explain.

Comprehend the law of diminishing marginal utility and how it affects consumer decisions.

Analyze the effect of changes in prices on utility maximization.

Calculate marginal utility and understand its role in determining optimal consumption choices.

Deduce the total utility obtained from consuming various quantities of goods.

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Definitions:

18th Amendment

An amendment to the United States Constitution that prohibited the manufacture, sale, and transportation of alcoholic beverages, later repealed by the 21st Amendment.

Alcohol Consumption

Refers to the intake of beverages containing ethanol, which can have varying effects on health and behavior.

Per Capita Consumption

The average consumption of a particular resource or product per person within a population.

Current Drinkers

Individuals who have consumed alcohol within a specified recent period and continue to do so.