has been spending $200,000 a year in various media in Anytown in an attempt to build
awareness of his stores. Instead of continuing to spend the same amount on advertising
every year, Jack wants an assessment as to what he has gained from the advertising he
has paid for. He is interested in knowing what percentage of the population in Anytown
is aware of his store’s name, menu, and locations – three factors for which he has
attempted to build awareness. His advertising agency quoted him a price for a survey
and told him they would use a sample size of 150, and that they were assuming 35
percent of the respondents would be aware of his advertising. Jack was reluctant to use
the advertising agency to conduct the survey. He felt like he needed another firm so as
to avoid any conflict of interest. He found a marketing researcher in town who was
certified as a CPR by the Marketing Research Association. The CPR asked Jack how
accurate he wanted the results of the survey to be. Jack said he wanted the percentage to
be within ±3 percent of the real population percentage. Assuming he wanted to be 95
percent confident of the accuracy of the results, the CPR used the following formula to
determine the accuracy of the survey recommended by the ad agency: ± sample error
percent = 1.96 the square root of pq/n. Using the formula, what would be the sample
error if Jack were to use the ad agency survey recommendation?
A) ±3 percent
B) ±4 percent
C) ±5 percent
D) ±6 percent
E) ±7 percent
What type of analysis would be used to answer a question such as “Which customer
demographic
is most strongly related to product purchase/nonpurchase”?
A) association or relationship analysis
B) predictive analysis
C) predictive or relationship analysis
D) analysis of variance