Code industry neither is in industry group 13 nor has a value of industry shipme
ID: 3322208 • Letter: C
Question
Code industry neither is in industry group 13 nor has a value of industry shipments of 2 CASE COLGATE-PALMOLIVE MAKES A TOTAL" EFFORT In the mid-1990s, Colgate-Palmolive developed a new tooth- Dis paste for the U.S, market, Colgate Total, with an antibacterial ingredient that was already being successfully sold overseas However, the word antibacterial was not allowed for such prod- ucts by the Food and Drug Administration rules. So Colgate- Palmolive had to come up with another way of marketing this and other features of their new toothpaste to U.S. consumers Market researchers told Colgate-Palmolive that consumers were weary of trying to discern among the different advantages of various toothpaste brands and wanted simplification in their shopping lives. In response, the name "Total" was given to the product in the United States: The one word would convey that 2. the toothpaste is the "total" package of various benefits. Young & Rubicam developed several commercials illustrating Total's benefits and tested the commercials with focus groups. One commercial touting Total's long-lasting benefits was partic-3 ularly successful. Meanwhile, in 1997, Colgate-Palmolive received FDA approval for Total, five years after the company had applied for it. The product was launched in the United States in January of 1998 using commercials that were designed from the more successful ideas of the focus group tests. Total was introduced with a $100 million advertising campaign. Ten months later, 21% of all United States households had pur- chased Total for the first time. During this same time period, 43% of those who initially tried Total purchased it again. A year after its release, Total was the number one toothpaste in the 4 . S St 10 United States. Total is advertised as not just a toothpaste but as a protective shield that protects you for a full range of oral health problems for up to 12 hours. Total is now offered in a variety of forms, including Colgate Total Advanced Whitening. Colgate Total Advanced Clean, Colgate Total Advanced Fresh co fir co pu tio cor Gel, Colgate Total Clean Mint Paste, Colgate Total Whitening Paste, Colgate Total Whitening Gel, Colgate Total Plus Whitening Liquid, and Colgate Total Mint Stripe Gel. In the Source United States, market share for Colgate Total toothpaste was the Colgate/L app/Colga 16.2% in the second quarter of 2008, which was its highest ColgateTo uarterly share ever. 164Explanation / Answer
(1) So the write up states that 21% of all households purchased total for the first time and 43% of this purchased it againin the same time period so the percentage of US households who pourchased it twice is 0.43*0.21= 0.09
Thus 9% of all the US households purchased it twice
(2) Now 20% of all americans are in the 45-64 age group and 24% of the consumers who purchased for the first time were in the 45-64 age group so 0.24*0.21*X = 0.05X were 45-64 age who purchased and 0.20*X is the toal population of al 45-64 age groups, if X is the whole poplulation
This means that 5 out of 20 people in the 45-64 age group purchased total for the first time, hence age group is not independent of initial purchase
(3) So 21 people in 100 purchased Total for the first time according to the write up if 100 is the total population and as per Q2 5 people out of these were in the 45-64 age group
So probability that a randomly selected person purchased total in the first 10 months given that he is in the 45-64 age group = 5/21 = 0.238