A company that sells eco-friendly cleaning products is concerned that only 19.5%

Question

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. 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? The data do not provide convincing evidence that the marketing campaign increases the percentage of customers for the company's products. The data do provide convincing evidence that the marketing campaign increases the percentage of customers for the company's products. The new marketing campaign is effective in increasing the percentage of customers buying their brand. The company should launch the new marketing campaign. None of the above.

Explanation / Answer

Answer : The given proportion is 19.5 %. They conducted the 98% confidence interval. The resulting interval is 16% to 28%. That means the proportion value of lie between the resulting confidence interval. In general if the proportion value is betweeen the confidence interval then we say that the true proportion mean is between the confidence interval.

For the above example the answer is B. Because the proportion value is lie between the confidence interval.

So the conclusion is B) The data provide the convincing evidence that the marketing compaign increases the percentage of customers for the company's products.

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