TABLE 12-2 Many Companies Use Well-Known Celebrities as Spokespersons in Their TV

question 33

Multiple Choice

TABLE 12-2
Many companies use well-known celebrities as spokespersons in their TV advertisements. A study was conducted to determine whether brand awareness of female TV viewers and the gender of the spokesperson are independent. Each in a sample of 300 female TV viewers was asked to identify a product advertised by a celebrity spokesperson. The gender of the spokesperson and whether or not the viewer could identify the product was recorded. The numbers in each category are given below.

-Referring to Table 12-2, which test would be used to properly analyze the data in this experiment?

• A) χ² test for independence
• B) χ² test for differences among more than two proportions
• C) Wilcoxon rank sum test for independent populations
• D) Kruskal-Wallis rank test

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Definitions:

Equity Ownership

Equity ownership denotes the holding of shares in a company, thereby providing the shareholder a claim on a portion of the corporation's assets and earnings.

Corporate Takeover

The acquisition of one company by another, through either direct purchase or by acquiring a majority stake in the target company’s equity.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder equity, indicating how much debt is used to finance assets.