The board of directors for Procter & Gamble is concerned that only 19.5% of the people who use toothpaste buy Crest toothpaste. A marketing director suggests that the company invest in a new marketing campaign which will include advertisements and new labeling for the toothpaste. The research department conducts product trials in test markets for one month to determine if the market share increases with new labels. In this context describe a Type I error and the impact such an error would have on the company. Choose the best answer below. Group of answer choices
A) A Type I error would be concluding the proportion of people who will buy Crest toothpaste will go down when in fact it won't. The company would waste money on a new marketing campaign that will not increase sales.
B) A Type I error would be deciding the proportion of people who will buy Crest toothpaste won't go up when in fact it would have. The company would miss an opportunity to increase sales.
C) A Type I error would be concluding the proportion of people who will buy Crest toothpaste will go up when in fact it won't. The company would waste money on a new marketing campaign that will not increase sales.
D) A Type I error would be concluding that nobody buy's Crest toothpaste anymore. The company would waste money on a new marketing campaign that will not increase sales.