Problem

“Made in the USA” survey. Refer to the Journal of Global Business (Spring 2002) study of w...

“Made in the USA” survey. Refer to the Journal of Global Business (Spring 2002) study of what “Made in the USA” means to consumers, presented in Exercise 2.13 (p. 36). Recall that 64 of 106 randomly selected shoppers believed that “Made in the USA” means that 100% of labor and materials are from the United States. Let p represent the true proportion of consumers who believe “Made in the USA” means that 100% of labor and materials are from the United States.

a. Calculate a point estimate for p.


b. A claim is made that p = .70. Set up the null and alternative hypothesis to test this claim.


c. Calculate the test statistic for the test you carried out in part b.


d. Find the rejection region for the test if α =.01.


e. Use the results from parts c and d to draw the appropriate conclusion.

Exercise 2.13

“Made in the USA” survey. “Made in the USA” is a claim stated in many product advertisements or on product labels. Advertisers want consumers to believe that their product is manufactured with 100% U.S. labor and materials—which is often not the case. What does “Made in the USA” mean to the typical consumer? To answer this question, a group of marketing professors conducted an experiment at a shopping mall in Muncie, Indiana. (Journal of Global Business, Spring 2002.) They asked every fourth adult entrant to the mall to participate in the study. A total of 106 shoppers agreed to answer the question, ‘“Made in the USA’ means what percentage of U.S. labor and materials?” The responses of the 106 shoppers are summarized in the following table:

Response to “Made in the USA”

Number of Shoppers

100%

64

75 to 99%

20

50 to 74%

18

Less than 50%

4

Source: ‘“Made in the USA’: Consumer perceptions, deception and policy alternatives.” Journal of Global Business, Vol. 13, No. 24, Spring 2002 (Table 3).

a. What type of data collection method was used?


b. What type of variable, quantitative or qualitative, was measured?


c. Present the data in the table in graphical form. Use the graph to make a statement about the percentage of consumers who believe that “Made in the USA” means 100% U.S. labor and materials.

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