SCENARIO 12-21
a Perfume Manufacturer Is Trying to Choose Between $\neq$

question 227

Multiple Choice

SCENARIO 12-21
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 Scenario 12-21,the hypotheses that should be used are:

• A)H₀ : M_D = 0 versus H₁ : M_D \(\neq\) 0
• B)H₀ : M_D \(\le\)0 versus H₁ : M_D \(\gt\) 0
• C)H₀ : M₁ = M₂ versus H₁ : M₁ \(\neq\) M₂
• D)H₀ : M₁ \(\le\) M₂ versus H₁ : M₁ \(\gt\)M₂

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Definitions:

Forfeiture Rule

The principle that a criminal should not be permitted to profit from a crime.

Criminal's Estate

The assets and properties owned by a criminal, which may be subject to legal action or forfeiture in the event of legal proceedings against the individual.

Negligence Action

A legal lawsuit filed when someone suffers harm due to another's failure to take reasonable care.

Insurable Interest

A vested interest by the policyholder in an insurance policy's subject matter, ensuring they suffer a direct financial loss if the insured event occurs.