A Company That Sells Eco-Friendly Cleaning Products Is Concerned That

Essay

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.
A. Write the null and alternative hypotheses.
b. 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? Explain.