Radio Advertising Is Big Business, Second Only to Television Advertising $\text { Number of correct responses from } 10 \text { questions }$

question 54

Essay

Radio advertising is big business, second only to television advertising. The objective for radio advertisements is to get listeners to remember as much as possible about the product/service being advertised. The advertising executive of a large company must decide between two pitched radio advertisements for their company. In order to ascertain the general public's perception, 12 randomly chosen people are selected to listen to both potential advertisements and are then asked a series of 5 questions regarding the radio advertisement's content. The number of correct responses are recorded and listed below. Assume that responses are non-normal. $\text { Number of correct responses from } 10 \text { questions }$
$\begin{array}{|c|c|c|}\hline \text { Respondent } & \begin{array}{c}\text { Radio } \\\text { advertisement 1 }\end{array} & \begin{array}{c}\text { Radio } \\\text { advertisement 2 }\end{array} \\\hline 1 & 3 & 1 \\\hline 2 & 5 & 5 \\\hline 3 & 5 & 4 \\\hline 4 & 4 & 3 \\\hline 5 & 3 & 2 \\\hline 6 & 2 & 1 \\\hline 7 & 1 & 3 \\\hline 8 & 4 & 2 \\\hline 9 & 5 & 1 \\\hline 10 & 3 & 4 \\\hline 11 & 4 & 3 \\\hline 12 & 3 & 1 \\\hline\end{array}$ a. Which test is appropriate for this situation?
b. Do these data provide enough evidence at the 5% significance level to conclude that the two radio advertisements differ?

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Definitions:

Antitrust Complaints

Allegations made against entities suspected of engaging in anti-competitive practices that violate antitrust laws designed to promote fair competition.

International Business

Commercial activities that occur across national borders, including trade, investment, and operational activities.

Tying Agreement

A practice where the seller of a product or service requires the buyer to also purchase another product or service.

Anticompetitive Effect

A situation or action that harms competition in a market, often by creating barriers to entry or monopolizing a sector.