Explain in managerial terms the effect of "alpha level" and "p"

To answer the question below, I was instructed to utilize one or more of the following techniques:

-Confidence intervals and hypothesis testing
-Decision trees (and their use in solving managerial problems),
-Critical fractile analysis (and its use in determining optimal demand levels),
-Analysis of variance/ANOVA (and its use in understanding differences between group means),
-Chi-square (cross tabs/contingency table) analysis (and its use in determining differences between group proportions),
-Regression, single and multiple (and its use in understanding relationships between dependent and independent (explanatory) variables), and
-Optimization modeling (and its use in determining the best solution given a set of constraint).

I'm not sure how I would do that. I have been lead to believe we are supposed to build a decision tree in support of our answer here.  But I have no clue how to do so.

Question:


You are a brand manager and have been running TV ads to market your product.  However, you are considering running a series of spots that specifically targets wealthy consumers.  The spots will cost $2K out of your $100K advertising budget.  You estimate the market potential for wealthy consumers to be $250K.  You hire a marketing research firm to conduct a survey that will help you determine if wealthy consumers will respond more favorably to the spots targeted towards them than the general spots.  The researcher suggests you "use an alpha level = .05."

a. Explain in managerial terms what is meant by "use an alpha level = .05."  Do you agree with her suggestion?  If so, explain why.  If not, explain why and indicate the alpha level you would use instead.

b.After conducting the research, the researcher reports that wealthy consumers did in fact respond more favorably to the spots targeted towards them than the general spots (p = .12).  Explain in managerial terms what is meant by p = .12.  Given your answer to question 1a, what managerial action would you undertake?