Question

Market Research Associates is conducting research to evaluate the effectiveness of a client’s new advertising campaign. Before the new campaign began, a telephone survey of 150 households in the test market area showed 60 households “aware” of the client’s product. The new campaign has been initiated with TV and newspaper advertisements running for three weeks. A survey conducted immediately after the new campaign showed 120 of 250 households “aware” of the client’s product. Does the data support the position that the advertising campaign has provided an increased awareness of the client’s product? Use α = 0.05 and the p-value approach.

Answer 1

Let , be the population proportion for the before the new campaign and be the population proportion for the after the new campaign.

Given : n1=150 , X1=60 , n2=250 , X2=120

The sample proportions are given by ,

p1=X1/n1=60/150=0.40

p2=X2/n2=120/250=0.48

The pooled estimate is given by ,

Q=1-P=1-0.45=0.55

Hypothesis: VS  

The test statistic is ,

The p-value is ,

p-value=

; From the standard normal probability table

Decision : Here , p-value=0.0594>α = 0.05

Therefore , fail to reject the Ho.

Conclusion : Hence , the data does not support the position that the advertising campaign has provided an increased awareness of the client’s product.