Pepsi estimated (guessed) that their market share was 25%. Was this a good guess assuming they meant market share among students?

Pepsi estimated (guessed) that their market share was 25%. Was this a good guess assuming they meant market share among students? Answer statistically.

Expert Solution

This is not the most well thought guess based on the fact that it takes in to account market share among students. In general, Pepsi has 19.6% of the market share across all categories. However, to be specific among a certain age group a lot of factors have to be taken into account.

Student category could encompass multiple intrinsic factors like region, level of edcation, relative price, substitute products etc. Hence it is not fair to make a broad generalisation even if turns out to be true. Obviously huge firms manipulate statistical data and can bring about such results. They may even rewrite it as "One among every 4 students prefers Pepsi". However this is a baseless claim unles backed statistically by thorough samplling.

Rahul Sunny answered 2 years ago

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