Cosmo: Analysing the Promotional Offer
Prerequisite Conceptual Understanding
Prerequisite Conceptual Understanding (PCU) material is the background material that would aid immensely in mapping the decision areas of this caselet and bring a synthesis amongst the relevant concepts. The participants/students should be encouraged to read this material to benefit from the broader perspectives outlined in the caselet.
- • Richard I. Levin and David S. Rubin, “Chapter 8: Testing Hypotheses: One-Sample Tests”, Statistics for Management, 7th Edition, Pearson Education, 2008
This caselet enables understanding of the application of Testing Hypothesis. Cosmo Construction Company, an upcoming construction company in Hyderabad, India, having successfully executed a few landmark projects, decided to expand. But its past success was not yielding any substantial increase in its customerbase. Having conducted the surveys to guage a new promotional offer, the Founder-CEO wants to know if the resulting hypothesis is correct. The caselet attempts to discuss how to infer the results of testing hypothesis.
- • To discuss the testing of hypothesis
- • To comprehend the ways to select the right test to examine the hypothesis
- • To understand the concepts of sample size and level of significance
- • To test the hypotheses and to draw inferences
- I. Analyze whether the observed increase in proportion of Cosmo’s customers was significant or not.
The Teaching Note follows a defined Teaching Plan [Annexure (TN)-I], which guides in conducting the classroom discussion.