TABLE 12-17
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 the more expensive layout to 4 groups and determines the approval rating for each group. He presents the "scratch-and-sniff" layout to 5 groups and again determines the approval rating of the perfume for each group. The data are given below. Use this to test the appropriate hypotheses with the Wilcoxon rank sum test with a level of significance of 0.05.
-Referring to Table 12-17, 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.

Question

TABLE 12-17
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 the more expensive layout to 4 groups and determines the approval rating for each group. He presents the "scratch-and-sniff" layout to 5 groups and again determines the approval rating of the perfume for each group. The data are given below. Use this to test the appropriate hypotheses with the Wilcoxon rank sum test with a level of significance of 0.05. 
-Referring to Table 12-17, 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.

Quizplus · Accepted Answer

The phrase "insufficient evidence to do otherwise" suggests that the decision is made due to a lack of strong evidence favoring an alternative, leading to the choice of the "scratch-and-sniff" layout.

TABLE 12-17 A Perfume Manufacturer Is Trying to Choose Between 2 Magazine