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Binomial probability distributions are used in business, science, engineering, and other fields. Suppose you work for a marketing agency and have to create a television ad for Brand A toothpaste. The toothpaste manufacturer claims that 40% of the toothpaste buyers prefer Brand A to Brand B. Your agency conducts a survey to check whether this claim is reasonable.
Respond to the following:
1.How would you do the sample survey?
- Explain how you would conduct the survey.
- What are the ethical implications if the manufacturer of Brand A toothpaste asked you to survey only its employees?
2.How would you interpret the outcomes?
- After conducting a random sample of people who do not work for the manufacturer, you found that 35/100 prefer Brand A. Could the manufacturer's claim still be true?
- Your random sample of 100 found only 25 people who preferred Brand A. Would you still be justified in running the ad?
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What value is business research and hypothesis testing to a company? How long should it take a company to complete a scientific research study?
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