SCENARIO 12-21 A Perfume Manufacturer Is Trying to Choose Between 2 Magazine

question 214

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 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.

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Definitions:

Depressed Economy

A state of the economy characterized by high unemployment, low spending, and overall financial hardship.

Anglo-American Merchants

Businesspeople from England or the United States engaged in international trade during the 17th to 19th centuries, often playing significant roles in colonial economies.

French West Indies

A region in the Caribbean Sea that consists of French overseas territories, known for their distinct Franco-Caribbean culture and history.

Illegal Trade

The exchange of goods or services that is forbidden by law, regulations, or treaty.