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Question: Consumers’ attitudes toward advertising. The two most common marketing tools used for product advertising are ads on television and ads in a print magazine. Consumers’ attitudes toward television and magazine advertising were investigated in the Journal of Advertising (Vol. 42, 2013). In one experiment, each in a sample of 159 college students were asked to rate both the television and the magazine marketing tool on a scale of 1 to 7 points according to whether the tool was a good example of advertising, a typical form of advertising, and a representative form of advertising. Summary statistics for these “typicality” scores are provided in the following table. One objective is to compare the mean ratings of TV and magazine advertisements.

a. The researchers analysed the data using a paired samples t-test. Explain why this is the most valid method of analysis. Give the null and alternative hypotheses for the test.

b. The researchers reported a paired t-value of 6.96 with an associated p-value of .001 and stated that the “mean difference between television and magazine advertising was statistically significant.” Explain what this means in the context of the hypothesis test.

c. To assess whether the result is “practically significant,” we require a confidence interval for the mean difference. Although this interval was not reported in the article, you can compute it using the information provided in the table. Find a 95% confidence interval for the mean difference and interpret the result. What is your opinion regarding whether the two means are “practically significant.”

Source: H. S. Jin and R. J. Lutz, “The Typicality and Accessibility of Consumer Attitudes Toward Television Advertising: Implications for the Measurement of Attitudes Toward Advertising in General,” Journal of Advertising, Vol. 42, No. 4, 2013 (from Table 1)

Short Answer

Expert verified

a.

b. The null hypothesis is rejected.

c. The 95% confidence interval for the mean difference is (0.322 to 0.578).

Step by step solution

01

(a) Null and alternative hypothesis of the test

The researchers examined parred information since two separate evaluations were acquired from each student, i.e., each student supplied two ratings. As a result, a television mating commercial, as well as magazine scores, are linked as well as reliant.

02

(b) Context of a hypothesis test

The p-value < 0.001 of the discovery is significant. The null hypothesis is rejected. We may infer that the average difference in advertising among magazines and television was statistically significant.

03

(c) Practically significant

Let 105 be

with

The 95% confidence interval for the mean difference is (0.322 to 0.578). We may infer that the two means are statistically significant because the confidence intervals do not include 0.

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Most popular questions from this chapter

Bankruptcy effect on U.S. airfares. Both Delta Airlines and USAir filed for bankruptcy. A study of the impact of bankruptcy on the fares charged by U.S. airlines was published in Research in Applied Economics (Vol. 2, 2010). The researchers collected data on Orlando-bound airfares for three airlines—Southwest (a stable airline), Delta (just entering bankruptcy at the time), and USAir (emerging from bankruptcy). A large sample of nonrefundable ticket prices was obtained for each airline following USAir’s emergence from bankruptcy, and then a 95% confidence interval for the true mean airfare was obtained for each. The results for 7-day advance bookings are shown in the accompanying table.

a. What confidence coefficient was used to generate the confidence intervals?

b. Give a practical interpretation of each of the 95% confidence intervals. Use the phrase “95% confident” in your answer.

c. When you say you are “95% confident,” what do you mean?

d. If you want to reduce the width of each confidence interval, should you use a smaller or larger confidence coefficient?

Question: Find the following probabilities for the standard normal random variable z:

a.P(z>1.46)b.P(z<-1.56)c.P(.67z<2.41)d.P(-1.96z-.33)e.P(Z0)f.P(-2.33<z<1.50)

Ages of self-employed immigrants. Is self-employment for immigrant workers a faster route to economic advancement in the country? This was one of the questions studied in research published in the International Journal of Manpower (Vol. 32, 2011). One aspect of the study involved comparing the ages of self-employed and wage-earning immigrants. The researcher found that in Sweden, native wage earners tend to be younger than self-employed natives. However, immigrant wage earners tend to be older than self-employed immigrants. This inference was based on the table's summary statistics for male Swedish immigrants.

Self-employed immigrants

Wage-earning immigrants

Sample Size

870

84,875

Mean

44.88

46.79

Source: Based on L. Andersson, "Occupational Choice and Returns to Self-Employment Among Immigrants," International Journal of Manpower, Vol. 32, No. 8, 2011 (Table I).

a. Based on the information given, why is it impossible to provide a measure of reliability for the inference "Self-employed immigrants are younger, on average, than wage-earning immigrants in Sweden"?

b. What information do you need to measure reliability for the inference, part a?

c. Give a value of the test statistic that would conclude that the true mean age of self-employed immigrants is less than the true mean age of wage-earning immigrants if you are willing to risk a Type I error rate of .01.

d. Assume that s, the standard deviation of the ages is the same for both self-employed and wage-earning immigrants. Give an estimate of s that would lead you to conclude that the true mean age of self-employed immigrants is less than the true mean age of wage-earning immigrants using α=0.01 .

e. Is the true value of s likely to be larger or smaller than the one you calculated in part d?

The data for a random sample of 10 paired observations is shown below.

PairSample from Population 1

(Observation 1)

Sample from Population 2 (Observation 2)
12345678910
19253152493459471751
24273653553466512055

a. If you wish to test whether these data are sufficient to indicate that the mean for population 2 is larger than that for population 1, what are the appropriate null and alternative hypotheses? Define any symbols you use.

b. Conduct the test, part a, usingα=.10.

c. Find a 90%confidence interval for μd. Interpret this result.

d. What assumptions are necessary to ensure the validity of this analysis?

Assume that x is a binomial random variable with n = 1000 andp = 0.50. Use a normal approximation to find each of the following probabilities:

a. P(x>500)

b.P(490x<500)

c.P(x>550)

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