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(Solved): A firm's corporate strategy is driven largely by its top management team. One method of gauging the ...
A firm's corporate strategy is driven largely by its top management team. One method of gauging the influence of marketing on corporate strategy is
to measure the proportion of firms with a chief marketing officer on their top management team. Over the 5-year period from 2000 to 2004, 42% of
firms had a chief marketing officer on their top management team. [Source: Pravin Nath and Vijay Mahajan, "Chief Marketing Officers: A Study of
Their Presence in Firms' Top Management Teams," Journal of Marketing, 70 (2007).]
To test the hypothesis that the influence of marketing on corporate strategy today is different from its influence in the 2000 - 2004 period, a random
sample of 81 U.S. firms is selected. Of these, 32 firms have a chief marketing officer on their top management team. The test is conducted at a
significance level of a=0.05.
Let p be the true proportion of firms with a chief marketing officer currently on their top management team. To conduct the hypothesis test, the null
and alternative hypotheses are formulated as:
H_(0):p<=0.42;H_(1):p>0.42
H_(0):p>=0.42;H_(1):p<0.42
H_(0):p=0.42;H_(1):p!=0.42
H_(0):hat(p)=0.42;H_(1):hat(p)!=0.42
If the null hypothesis is true, the sampling distribution of the sample proportion widehat(P) can be approximated by a
with a mean
r and a standard deviation of
The test statistic is
t Distribution
Degrees of Freedom =75a=0.05 H_(0) if z<=-1.960
Reject H_(0) if z<=-1.960 or if z>=1.960
Reject H_(0) if z<=-1.645 or if z>=1.645
Reject H_(0) if t<=-1.990 or if t>=1.990
Use the provided Distributions tool to determine the p-value. The p-value is
Using the rejection region method, the null hypothesis is
, because
. Using the p-value
approach, the null hypothesis is
, becaus:
Z . Therefore, you
infer that the influence of marketing
on corporate strategy today is different from its influence in the 2000-2004 period.