Instruction 19-3
a Perfume Manufacturer Is Trying to Choose Between $\begin{array}{cc}\text { Padkage } & \text { Scratch } \\\hline 52 & 37 \\68 & 43 \\43 & 53 \\48 & 39 \\56 & 47\end{array}$

question 47

Short Answer

Instruction 19-3
A perfume manufacturer is trying to choose between two 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 five 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 favour of the more expensive layout with a level of significance of 0.05.
$\begin{array}{cc}\text { Padkage } & \text { Scratch } \\\hline 52 & 37 \\68 & 43 \\43 & 53 \\48 & 39 \\56 & 47\end{array}$

-Referring to Instruction 19-3,which pair(s)of observations has a negative signed rank?

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, includes voting rights, and entitles the holder to dividends.

Recession

A temporary phase of economic downturn characterized by decreased trade and industrial activity, typically recognized by a decline in the Gross Domestic Product (GDP) for two consecutive quarters.

Expected Rate of Return

The anticipated percentage increase in value that an investment is predicted to generate over a specific time.

Expected Return

The average of all possible returns for an investment, weighted by the likelihood of each outcome.