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Ball purchasers will buy a callaway golf ball

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Reference no: EM133100611

Please pay close attention to the details (numbers) as they changed from priors exercise and questions. 

Callaway is thinking about entering the golf ball market. The company will make a profit if its market share is more than 15%. A market survey indicates that 128 of 758 golf ball purchasers will buy a Callaway golf ball.

Answer the following questions:

  1. Is the market survey market share alone enough evidence to persuade Callaway to enter the golf ball market?
  2. How would you use hypothesis testing to help you make your decision if you were Callaway management and you required 90% confidence in your market research results? Why does hypothesis testing support or not support entering the golf ball market?  Show all your work.
  3. Besides the market survey results, what other considerations might enter your decision on whether to enter the golf ball market?

Reference no: EM133100611

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