An automotive parts company has been besieged with poor publicity over the past few years due to several highly publicized product recalls which have tarnished its public image. This has prompted a series of quality improvement initiatives. Currently, the marketing manager would like to determine if these initiatives have been successful in changing public perception about the company. Below are results of two surveys, each of 600 random adults. Survey 1 was conducted prior to the quality initiatives. Survey 2 was conducted after the quality initiatives were implemented and publicized.

a. State the appropriate null and alternative hypotheses to test if the public perception has changed since the quality initiatives have been implemented.
b. Use the critical value approach to reach a conclusion at the 1% significance level.
c. Is your conclusion sensitive to the choice of significance level?

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Public Perception Negative Neutral Positive 180 Survey 1 previous) Survey 2 (current) 324 96 246 146 208