Question
Two companies A and B have recently conducted aggressive advertising campaigns in order to maintain and possibly increase their respective shares of the market for
Two companies A and B have recently conducted aggressive advertising campaigns in order
to maintain and possibly increase their respective shares of the market for fabric softener.
Before the adverts began, the market share of company A was 45%, company B was 40% and
other competitors accounted for the remaining 15%. To determine whether these market
shares changed after the campaigns, a marketing analyst solicited the preferences of a random
sample of 200 customers of fabric softener. Of the 200 customers, 102 indicated a preference
for company A, 82 preferred company B and the remaining 16 preferred the products of one
of the competitors'. Can the analyst infer at the 5% significance level that the customer
preferences have changed from their levels before the advertising campaigns were launched?
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