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= M₂versus H₁: M₁$\neq$ M₂ D)H₀: M₁$\le$ M₂versus H₁: M₁ $\gt$M₂

Question

Quizplus · Accepted Answer

The hypothesis should be: 
H0: MD = 0 (there is no difference in approval rating between the expensive and cheap layouts)
Ha: MD > 0 (the expensive layout leads to a higher approval rating)
Since we are testing for a higher approval rating for the expensive layout, we use a one-tailed test. The best choice for this would be B, where the null hypothesis states that the difference in approval rating is less than or equal to zero, and the alternative hypothesis states that the difference in approval rating is greater than zero.

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