A consumer products company is considering introducing a new product nationally. To help make the decision, it first conducts a test market by selling the product for a few months in one city. This is an example of:
A) descriptive statistics.
B) charts and graphs.
C) estimation.
D) hypothesis testing.

Question

Quizplus · Accepted Answer

Conducting a test market by selling a product in one city before a national launch is an example of estimation. It allows the company to estimate potential sales, consumer response, and overall viability of the product on a larger scale based on the data gathered from the test market.

A Consumer Products Company Is Considering Introducing a New Product