Marketing Analytics are a big trend, but many companies are not effectively appl
ID: 3219233 • Letter: M
Question
Marketing Analytics are a big trend, but many companies are not effectively applying them. You find a recent report (https://cmosurvey.org/results) with results of a survey on this topic by the top U.S. marketers at for-profit companies. The report states that 2813 companies were sent this survey. On p. 151 of the Results by Firm & Industry Characteristics, the report shows data for the 229 survey respondents with regards to how they measure short-term impact of their marketing spend. a) Would you expect these 229 respondents to be a random sample of the survey population? Explain. b) Now assume the 229 sample to be random, irrespective of your response to a) and consider the following. The report shows that 37.1% of the respondents show the impact quantitatively. You know that this is US data, but you happen to have data on 24 Canadian companies, and you see that 7 of those companies show the impact quantitatively. Do you have reason to doubt the Canadian companies can be considered part of the same population as the survey respondents? Show your calculations and assume a cut-off point of 5%.Explanation / Answer
(a) Yes, as 2813 companies were sent this survey and 229 companies actually responded. As the population size is not much diverse as they belong to one country US and all of them are for- profit company so this can be justified as a random sample of survey population.
(b) p0 = 0.371
and pcanada = 7 /24= 0.2917
Null hypothesis : H0 : p = p0
Alternative Hypothesis : H1 : p p0
Test - statistics
Z = ( p - p0)/ sqrt (p0 (1- p0)/n) = (0.2917 - 0.371)/ sqrt(0.371 * 0.629/24) = (-0.0793)/0.0986 = - 0.8042
and Zcritical for alpha = 0.05
Zcritical = - 1.96
so z < Zcritical , Here we cannot reject the null hypothesis so we can conclude that Canadian companies can be considerd part of the same population as the US survey respondents.