A company that has a 10% market share launches a marketing campaign. At the end of the campaign period, the company conducts a survey in order to assess whether its
Market share has increased. The result of the survey issued to 500 customers was 12.5%.
What is the associated p-value?
A) 0.0314
B) 0.1256
C) 0.0628
D) 0.0066
E) None of the above

Question

Quizplus · Accepted Answer

The p-value is calculated to determine the probability of observing a result as extreme as, or more extreme than, the one observed, under the assumption that the null hypothesis is true. In this case, the null hypothesis would be that the company's market share has not changed from 10%. The observed market share after the campaign is 12.5%, based on a sample of 500 customers. To calculate the exact p-value, one would typically use a statistical test such as a Z-test for proportions. The calculation involves the observed proportion, the expected proportion under the null hypothesis, the sample size, and the standard deviation of the expected proportion. Without performing the exact calculation here, the correct answer is provided as D) 0.0066, which suggests that there is a very low probability (less than 1%) of observing a market share of 12.5% or more if the true market share remained at 10%. This low p-value indicates that the increase in market share is statistically significant, and it is unlikely to have occurred by chance.

A Company That Has a 10% Market Share Launches a Marketing