In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil H. Firtle discuss a marketing research proposal to study day- after recall for a brand of mouthwash. To quote the authors:

The ad agency has developed a TV ad for the introduction of the mouthwash. The objective of the ad is to create awareness of the brand. The objective of this research is to evaluate the awareness generated by the ad measured by aided- and unaided- recall scores.

A minimum of 200 respondents who claim to have watched the TV show in which the ad was aired the night before will be contacted by telephone in 20 cities.

The study will provide information on the incidence of unaided and aided recall.

Suppose a random sample of 200 respondents shows that 46 of the people interviewed were able to recall the commercial without any prompting (unaided recall).

a. In order for the ad to be considered successful, the percentage of unaided recall must be above the category norm for a TV commercial for the product class. If this norm is 18 percent, set up the null and alternative hypotheses needed to attempt to provide evidence that the ad is successful.

b. Use the previously given sample information to: (1) Compute the p-value for the hypothesis test you set up in part a. (2) Use the p- value to carry out the test by setting a equal to .10, .05, .01, and .001. (3) How much evidence is there that the TV commercial is successful?

c. Do you think the result of the ad agency’s survey has practical importance? Explain your opinion.