Seeking to Stop Declining Sales for an Established Mouthwash, a Sales

question 42

Multiple Choice

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

• A) be concerned about the possibility of the firm getting a monopoly.
• B) allow the company to call the product "new" for only six months.
• C) probably not approve of this at all because the product doesn't meet the FTC's definition of "new."
• D) allow the promotion effort if it felt that consumers would think the coloring made it "new."
• E) None of these alternatives is correct.

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Definitions:

Population Variance

The variance calculated from the entire population of a dataset, representing the true measure of its variability.

Chi-Squared Distribution

A probability distribution used in statistical hypothesis tests that is built by squaring independent standard normal random variables.

Random Variable

A measurable variable with outcomes based on the randomness of specific incidents.

Significance Level

The threshold below which a p-value is considered statistically significant, typical levels are 0.05, 0.01, etc., indicating the probability of rejecting the null hypothesis when it is true.