Problem

“Made in the USA” survey. Refer to Exercise 2.177 (p. 99) and the Journal of Global Busine...

“Made in the USA” survey. Refer to Exercise 2.177 (p. 99) and the Journal of Global Business (Spring 2002) survey to determine what “Made in the USA” means to consumers. Recall that 106 shoppers at a shopping mall in Muncie, Indiana, responded to the question “‘Made in the USA’ means what percentage of U.S. labor and materials?” Sixtyfour shoppers answered “100%.”

a. Define the population of interest in the survey.


b. What is the characteristic of interest in the population?


c. Use a 90% confidence interval to estimate the true proportion of consumers who believe that “Made in the USA” means 100% U.S. labor and materials.


d. Give a practical interpretation of the interval you used in part c.


e. Explain what the phrase “90% confidence” means for this interval.

“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 as follows: 64 shoppers responded 100%; 20 shoppers stated 75 to 99%; 18 shoppers stated 50 to 74%; and 4 shoppers said less than 50%.

a. What type of data collection method was used?


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


c. Present the data 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.

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

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