Question 04Efforts are under way to make the U.S. automobile industry more efficient and competitive

Question 04Efforts are under way to make the U.S. automobile industry more efficient and competitive sothat it will be able to survive intense competition from foreign automakers. An industry analyst isquoted as saying, “GM is sized for 60% of the market, and they only have 43%.” General Motorsneeds to know its actual market share because such knowledge would help the company makebetter decisions about trimming down or expanding so that it could become more efficient. Acompany executive, pushing for expansion rather than for cutting down, is interested in provingthat the analyst’s claim that GM’s share of the market is 43% is false and that, in fact, GM’s truemarket share is higher. The executive hires a market research firm to study the problem and carryout the hypothesis test she proposed. The market research agency looks at a random sample of5,500 cars throughout the country and finds that 2,521 are GM cars. What should be theexecutive’s conclusion? How should she present her results to GM’s vice president foroperations?