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

question 38

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 rank given to the last observation in the "scratch-and-sniff" group is ________.

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Definitions:

Actual Output

The real quantity of goods or services produced by a company, as opposed to estimated or planned production levels.

Standard Cost System

An accounting system that uses predetermined costs for products or services to facilitate variance analysis and budgeting.

Direct Labour Hours

Total hours accumulated by workers directly involved in the fabrication process.

Direct Materials Inventory

The total cost of raw materials that are directly involved in the manufacturing of a product and are currently held in inventory.