TABLE 12-16
a Perfume Manufacturer Is Trying to Choose Between $$\begin{array} { l l } \text { Package } & \text { Scratch } \\\hline 52 & 37 \\68 & 43 \\43 & 53 \\48 & 39 \\56 & 47\end{array}$$

question 188

Multiple Choice

TABLE 12-16
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 both layouts to 5 groups and determines the approval rating from each group on both layouts. The data are given below. Use this to test whether the median difference in approval rating is different from zero in favor of the more expensive layout with a level of significance of 0.05.
$$\begin{array} { l l } \text { Package } & \text { Scratch } \\\hline 52 & 37 \\68 & 43 \\43 & 53 \\48 & 39 \\56 & 47\end{array}$$
-Referring to Table 12-16, which hypotheses should be used?

• A) \( H_{0}: M_{D} \leq 0 \) versus \( H_{1}: M_{D}>0 \)
• B) \( H_{0}: M_{1}=M_{2} \) versus \( H_{1}: M_{1} \neq M_{2} \)
• C) \( H_{0}: M_{D}=0 \) versus \( H_{1}: M_{D} \neq 0 \)
• D) \( H_{0}: M_{1} \leq M_{2} \) versus \( H_{1}: M_{1}>M_{2} \)

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Definitions:

Operating Decisions

Choices made by management regarding daily operations of a business that affect its efficiency and effectiveness.

Top Management

The highest level of management in an organization, responsible for making strategic decisions.

Decentralization

The distribution of decision-making powers from central authority to individuals or units at lower levels within an organization or state.

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.