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1. In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil H. Firtle present the results of a concept study for a new wine cooler. Three hundred consumers between 21 and 49 years old were randomly selected. After sampling the new beverage, each was asked to rate the appeal of the phrase
Not sweet like wine coolers, not filling like beer, and more refreshing than wine or mixed drinks
as it relates to the new wine cooler. The rating was made on a scale from 1 to 5, with 5 representing “extremely appealing” and with 1 representing “not at all appealing.” The results obtained are given in Table 4.2.
2. A company administers an “aptitude test for managers” to aid in selecting new management trainees. Prior experience suggests that 60 percent of all applicants for management trainee positions would be successful if they were hired. Furthermore, past experience with the aptitude test indicates that 85 percent of applicants who turn out to be successful managers pass the test and 90 percent of applicants who do not turn out to be successful managers fail the test.
a If an applicant passes the “aptitude test for managers,” what is the probability that the applicant will succeed in a management position?
b Based on your answer to part a, do you think that the “aptitude test for managers” is a valuable way to screen applicants for management trainee positions? Explain.
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