TABLE 12-15
a Perfume Manufacturer Is Trying to Choose

question 160

Multiple Choice

TABLE 12-15
A perfume manufacturer is trying to choose between 2 magazine advertising layouts. An expensive layout would include a small package of the perfume. A cheaper layout would include a "scratch-and-sniff" sample of the product. The manufacturer would use the more expensive layout only if there is evidence that it would lead to a higher approval rate. The manufacturer presents the more expensive layout to 4 groups and determines the approval rating for each group. He presents the "scratch-and-sniff" layout to 5 groups and again determines the approval rating of the perfume for each group. The data are given below. Use this to test the appropriate hypotheses with the Wilcoxon Rank Sum Test with a level of significance of 0.05.
$$\begin{array}{l}\begin{array} { l l } \text { Package}& \text { Scratch }\\52 & 37 \\68 & 43 \\43 & 53 \\48 & 39 \\& 47\end{array}\end{array}$$
-Referring to Table 12-15, the perfume manufacturer will

• A) use the "scratch-and-sniff" layout because there is sufficient evidence to conclude that this is the best course of action.
• B) use the package layout because there is sufficient evidence to conclude that this is the best course of action.
• C) use the package layout because there is insufficient evidence to do otherwise.
• D) use the "scratch-and-sniff" layout because there is insufficient evidence to do otherwise.

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Definitions:

Equitable Distribution

The fair and impartial division of resources or wealth among all members of a society.

Government Role

The responsibilities and activities undertaken by a government, including the creation and enforcement of laws, economic regulation, and public services.

Capital Goods

Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products produced for purchase by individuals and households for personal use, such as clothing, food, and electronics.