TABLE 12-1 A Perfume Manufacturer Is Trying to Choose Between 2 Magazine

question 120

Short Answer

TABLE 12-1
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 both layouts to 5 groups and determines the approval rating from each group on both layouts. The data are given below. Use this to test whether the median difference in approval rating is different from zero in favor of the more expensive layout with a level of significance of 0.05.
-Referring to Table 12-1, what is the rank of the absolute difference for the last pair of observations?

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Definitions:

Compensation

Payment or benefit given, often to employees or in settlement of a claim, for services rendered, loss suffered, or injury incurred.

Superior Claim

A legal assertion that some interests or rights (such as those in property) are ranked higher than others, giving them priority in being honored or executed.

Harvester

An individual or machine that gathers crops or other natural resources from fields or natural habitats.

Storage Yard

A designated outdoor area used for the keeping of goods, materials, vehicles, or equipment.