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In an article in the Journal of Retailing, J. G. Blodgett, D. H. Granbois, and R. G. Walters investigated negative word-of-mouth consumer behavior. In a
In an article in the Journal of Retailing, J. G. Blodgett, D. H. Granbois, and R. G. Walters investigated negative word-of-mouth consumer behavior. In a random sample of 201 consumers, 150 reported that they engaged in negative word-of-mouth behavior (for instance, they vowed never to patronize a retailer again). In addition, the 150 respondents who engaged in such behavior, on average, told 4.88 people about their dissatisfying experience (with a standard deviation equal to 6.11). (a) Use these sample results to compute a 95 percent confidence interval for the proportion of all consumers who engage in negative word-of-mouth behavior. On the basis of this interval, would it be reasonable to claim that more than 70 percent of all consumers engage in such behavior? (Round your answers to 3 decimal places.) The 95 percent confidence interval is [ , the proportion could be 0.70.(b) Use the sample results to compute a 95 percent confidence interval for the population mean number of people who are told about a dissatisfying experience by consumers who engage in negative word-of-mouth behavior. On the basis of this interval, would it be reasonable to claim that these dissatisfied consumers tell, on average, at least three people about their bad experience? Note: t .025 = 1.98 when df=149. (Round your answers to 3 decimal places.) The 95 percent confidence interval is the interval is 3
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