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

question 105

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, calculate 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) 96, 9, is
• B) 784, 3.96, is
• C) 784, 9, is not
• D) 96, 39.6, is not
• E) 396, 78.4, is not

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Definitions:

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change regardless of a price change.

Midpoint Method

A technique used to calculate the percentage change between two values, offering a more precise method than simple percentage calculations.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often used to understand the sensitivity of demand in relation to price changes.

Midpoint Method

A technique used in economics to calculate the percentage change in variables, offering a more precise measure of elasticity between two points.