Question

Apex Sports is thinking about entering the golf ball market. The company will make a profit if its market share is more than 15%. A market survey indicates that 128 of 758 golf ball purchasers will buy an Apex Sports golf ball. In your initial post, answer the following questions:

- Is the market survey alone enough evidence to persuade Apex Sports to enter the golf ball market?
- How would you use hypothesis testing to help you make your decision if you were Apex Sports management and you required 90% confidence in your market research results? Does hypothesis testing support or not support entering the golf ball market? Show all your work.
- Besides the market survey results, what other considerations might enter your decision on whether to enter the golf ball market?
- If Apex Sports decides to enter the golf ball market, what are their probabilities for success?

Answer 1

Based on the market survey alone, it can be concluded that Apex Sports should enter the golf ball market as the calculated market share percentage is greater than the required threshold. Hypothesis testing can be used to make a decision with 90% confidence by setting up the null and alternative hypotheses, calculating the test statistic, and comparing it to the critical value. Other considerations for entering the golf ball market include competition, demand, production capabilities, and profitability. If Apex Sports decides to enter the market, their probability for success depends on various factors such as marketing, quality, pricing, and customer satisfaction.

Step-by-step explanation:

In order to determine whether Apex Sports should enter the golf ball market based on the market survey alone, we need to calculate the market share percentage. The market share can be calculated by dividing the number of golf ball purchasers who will buy an Apex Sports golf ball (128) by the total number of golf ball purchasers (758). The market share percentage is then 128/758 × 100 ≈ 16.90%, which is greater than the required 15%. Therefore, based on the market survey alone, it can be concluded that Apex Sports should enter the golf ball market.

To use hypothesis testing to make a decision with 90% confidence, we would set up the null and alternative hypotheses. The null hypothesis (H0) would be that the proportion of golf ball purchasers who will buy an Apex Sports golf ball is equal to 15%, and the alternative hypothesis (Ha) would be that the proportion is greater than 15%. Then, we would calculate the test statistic and compare it to the critical value to determine if the null hypothesis can be rejected or not.

Other considerations that might enter the decision of whether to enter the golf ball market could include the current competition in the market, the potential demand for golf balls, the company's production capabilities, and the overall profitability of entering the market.

If Apex Sports decides to enter the golf ball market, their probability for success would depend on various factors such as the effectiveness of their marketing strategies, the quality and performance of their golf balls compared to competitors, the pricing and distribution strategy, and customer satisfaction.