It Is Important to Sponsors of Television Shows That Viewers

question 34

Short Answer

It is important to sponsors of television shows that viewers remember as much as possible about the commercials. The advertising executive of a large company is trying to decide which of two commercials to use on a weekly half-hour comedy. To help make a decision she decides to have 12 individuals watch both commercials. After each viewing, each respondent is given a quiz consisting of 10 questions. The number of correct responses is recorded and listed below. Assume that the quiz results are not normally distributed. Do these data provide enough evidence at the 5% significance level to conclude that the two commercials differ?
z-statistic = ______________
Reject if |z| > ______________
Conclusion: ______________
The data ______________ enough evidence at the 5% significance level to conclude that the two commercials differ

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Definitions:

Sensitivity Analysis

The process of analyzing the impact of varying key assumptions or input variables on the outcome of a decision or model.

Annual Net Cash Flow

The difference between a company's total cash inflows and outflows over one fiscal year, reflecting its ability to generate cash.

Average Rate Of Return

A method of evaluating a capital investment proposal that focuses on the expected profitability of the investment; computed as average annual income divided by average investment. Also referred to as accounting rate of return.

Average Income

The mean amount of earnings generated over a specified period of time, taking into account all revenue sources.