TABLE 12-17 A Perfume Manufacturer Is Trying to Choose Between 2 Magazine

question 63

Short Answer

TABLE 12-17
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.
-Referring to Table 12-17, the calculated value of the test statistic is ________.

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Definitions:

Vintner

is a person engaged in winemaking, especially one who is responsible for the production of wine at a vineyard or winery.

Opportunity Cost

The expense incurred by not selecting the second-best choice during a decision-making process or when evaluating different alternatives.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.

Marginal Rate

Often refers to the marginal rate of substitution or marginal rate of transformation in economics, indicating the rate at which one good can be substituted for another.