A Gum Manufacturer Wants to Determine Whether Blue Packaging or Red

question 12

Multiple Choice

A gum manufacturer wants to determine whether blue packaging or red packaging is preferred.The company performs a sales test by introducing red packages into a random sample of ten stores,and blue packages are introduced in an independent,random sample of ten stores.The technique most appropriate for analyzing the data is

• A)a paired sample t-test for means.
• B)the Spearman rank-order correlation analysis.
• C)regression analysis.
• D)an independent samples t-test for means.
• E)correlation analysis.

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Definitions:

Discount

A reduction from the full amount or value of a product or service, usually to entice customers or accelerate sales.

Effective Interest Method

An accounting practice for amortizing a bond discount or premium on the basis of effective interest rate, rather than the straightforward straight-line method.

Discount

A reduction applied to the price of goods or services, or the difference between the nominal value of a financial instrument and its lower market price.

Bond Liability

A financial obligation of a company that arises when it issues bonds to raise funds, representing its need to repay the principal and interest to bondholders.