Hershey Corporation Wants to Add Additional Chocolate Kisses to Each

question 65

Multiple Choice

Hershey Corporation wants to add additional chocolate kisses to each bag of its popular candy while keeping the current price constant. Hershey wonders if the additional candies would cause sales to increase enough to offset the higher costs. What type of primary data research should the company use to answer this question.

• A) Conduct focus group interviews in a laboratory setting.
• B) Use telephone interviews with current and potential customers.
• C) Use observation research.
• D) Use experimental research.
• E) Use mail surveys with current customers.

---

Definitions:

Bayes' Theorem

A mathematical formula that describes how to update the probabilities of hypotheses when given evidence.

Multiplication Law

A probability rule that determines the likelihood of two independent events occurring together by multiplying their individual probabilities.

Chebyshev's Theorem

A statistical theorem stating that for any set of data, the proportion of results that fall within k standard deviations from the mean is at least 1-1/k^2 for k>1.

Empirical Rule

A rule that can be used to compute the percentage of data values that must be within one, two, and three standard deviations of the mean for data that exhibit a bell-shaped distribution.