Question: The market for breakfast cereals has been divided into several
The market for breakfast cereals has been divided into several segments related to health. One company identified a segment as those adults who are health conscious. The marketing manager would like to know whether this segment is more likely to purchase its Special X cereal that is pitched toward the health conscious segment. A survey of adults was undertaken. On the basis of several probing questions each was classified as either a member of the health-conscious group (code = 1) or not (code = 2). Each respondent was also asked whether he or she buys Special X (1 = No, 2 = Yes). The data were recorded in stacked format. Can we infer from these data that health-conscious adults are more likely to buy Special X?
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