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

question 304

Multiple Choice

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, the perfume manufacturer will

• A) use the "scratch-and-sniff" layout because there is insufficient evidence to do otherwise.
• B) use the package layout because there is insufficient evidence to do otherwise.
• C) use the "scratch-and-sniff" layout because there is sufficient evidence to conclude that this is the best course of action.
• D) use the package layout because there is sufficient evidence to conclude that this is the best course of action.