Question
The market share of a company depends on several components such as the intensity of their own advertising campaign and the level of advertising its
The market share of a company depends on several components such as the intensity of their own advertising campaign and the level of advertising its competitor does. A large company is believed to have a market share of 64%. The CEO of the company wants to test whether or not this value is still valid since its competitor has recently launched a new advertising campaign. A random sample of 500 consumers reveals that 244 of them use the company's product. Calculate a 90% confidence interval for the proportion of consumers who use the company's product. Would you feel comfortable in telling this CEO that her company has lost market share? Explain.
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