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Consider the Following to Answer the Question(s) Below

Question 36

Multiple Choice

Consider the following to answer the question(s) below:
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 but in a test market so that the effectiveness of the marketing campaign may be evaluated.
-In this context, committing a Type I error


A) occurs when they conclude that the percentage of customers purchasing the company's brand has decreased when in fact it has not.
B) occurs when they conclude that the percentage of customers purchasing the company's brand has not increased when in fact it has.
C) would result in the company spending money on a new marketing campaign that does increase the percentage of customers buying their brand.
D) occurs when they conclude that the percentage of customers purchasing the company's brand has increased when in fact it has not and would result in the company wasting money on a new. marketing campaign that does not increase the percentage of customers buying their brand
E) would have absolutely no effect on the company.

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