A large company is planning an advertising campaign for one of its soap products. A member
of the marketing team suggested they conduct an initial survey to determine the current market
share of this product. One hundred people were surveyed and twenty indicated they purchased
the company’s product.
The company then ran an advertisement for this same soap product. After the advertisement
had been run for several months, the company conducted a second survey of another one
hundred people. The participants were asked the following two questions and their responses
Do you recall seeing the advertisement about this soap product?
Have you purchased this soap product?
a. Estimate the company’s market share based on their initial survey before the advertising
campaign. Explain why this an estimate of their market share only and not the “exact” or