SCENARIO 9-7 a Major Home Improvement Store Conducted Its Biggest

question 110

True/False

SCENARIO 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 were 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 Scenario 9-7, the value of is 0.90.

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Definitions:

Availability Heuristic

A strategy in which one estimates the frequency or probability of an event by the ease with which mental operations, such as retrieval of examples and construction of examples, can be carried out.

Frequency

In general terms, it refers to how often something occurs within a specific interval or context, such as the number of repetitions of a wave per second in physics.

Expected Utility Theory

A normative model of decision making in which the decision maker weighs the personal importance and probabilities of different outcomes in choosing among alternatives in order to maximize overall satisfaction of personal goals.

Prescriptive

Relating to the imposition or enforcement of rules, norms, or recommendations, often in a directive way.