TABLE 12-9 Many Companies Use Well-Known Celebrities as Spokespersons in Their TV

question 189

Multiple Choice

TABLE 12-9
Many companies use well-known celebrities as spokespersons in their TV advertisements. A study was conducted to determine whether brand awareness of female TV viewers and the gender of the spokesperson are independent. Each in a sample of 300 female TV viewers was asked to identify a product advertised by a celebrity spokesperson. The gender of the spokesperson and whether or not the viewer could identify the product was recorded. The numbers in each category are given below.

-Referring to Table 12-9, at 5% level of significance, the conclusion is that

• A) brand awareness of female TV viewers and the gender of the spokesperson are independent.
• B) brand awareness of female TV viewers and the gender of the spokesperson are not independent.
• C) brand awareness of female TV viewers and the gender of the spokesperson are related.
• D) Both B and C.

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Definitions:

Sales Tax

A tax levied by the government on the sale of goods and services.

Credit Sales

Credit sales are transactions where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Liability Classification

The process of categorizing liabilities on the balance sheet as either current (due within one year) or long-term.

Short-Term Obligation

A debt or other financial obligation that is due to be paid within one year or within the entity's operating cycle if longer.