A Researcher Wants to Determine Whether There Is a Difference

question 4

Essay

A researcher wants to determine whether there is a difference between two sunscreen lotions. Participants in amarathon race on a hot, sunny day applied lotion A to one arm and lotion B to the other arm. The results areshown in the table. $\begin{array}{cr|cc} & & \text { Lotion A } \\& & \text { No burn (Success) } & \text { Burn (Failure) } \\\hline & \text { No burn (Success) } & 720 & 41 \\ \text { Lotion B }\\& \text { Burn (Failure) } & 51 & 74\end{array}$
Is there a difference in the effectiveness of the two lotions in preventing sunburn? Use the critical-valuemethod and the α = 0.05 level of significance.

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Definitions:

Equilibrium Price

The market valuation where the supply of products equals the demand for products.

Gains From Trade

The benefits that parties obtain from engaging in voluntary trading, often leading to an increase in overall welfare and efficiencies.

Consumer Surplus

The mismatch between the aggregate amount consumers intend and can afford to pay for a product or service and the aggregate amount they really pay.

Producer Surplus

The difference between the amount a producer is willing to accept for a good versus what they actually receive in the market.