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Statistics and Probability

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Goodness of Fit Test of Market Shares

STATS-I1DXHR

A goodness-of-fit test is used in a situation where three companies want to know if their market shares remain the same after one company introduced a new product into the market.

Their market shares before the new product introduction were:

$30\%$ for Company $A$
$25\%$ for Company $B$
$45\%$ for Company $C$

What is the null hypothesis?

A

That there is no difference in market shares among the three companies.

B

That the market share of Company $C$ is higher than that of the other two companies.

C

A goodness-of-fit test can not be applied to this study.

D

That the market shares are $30\%$ for Company $A$, $25\%$ for Company $B$, and $45\%$ for Company $C$.