Pete Wants to Determine Whether Changing the Form of a Paid

question 22

Essay

Pete wants to determine whether changing the form of a paid search ad affects click-through.He wants to change both wording and type color.He plans to run one experiment focusing on just the change in wording and a second experiment focusing on just the change in type color.What is the better alternative to this plan?

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Definitions:

Revealed Preference

A theory that determines consumer choice based on the idea that preferences can be understood by observing consumer behavior and choices.

Insurance Agent

A professional who sells, solicits, or negotiates insurance for compensation.

Salary Increase

An upward adjustment to an employee's base compensation.

Nonlabor Income

Income received that does not originate from employment or wages, such as dividends, interest, and rental income.