A company that produces and markets continuing education programs on DVDs for the educational testing industry has traditionally mailed advertising to prospective customers. A market research study was undertaken to compare two approaches: mailing a sample DVD upon request that contained highlights of the full DVD and sending an email containing a link to a website from which sample material could be downloaded. Of those who responded to either the mailing or the email, the results were as follows in terms of purchase of the complete DVD:

a. At the 0.05 level of significance, is there evidence of a difference in the proportion of DVDs purchased on the basis of the type of media used?
b. On the basis of the results of (a), which type of media should the company use in the future? Explain the rationale for your decision.
The company also wanted to determine which of three sales approaches should be used to generate sales among those who either requested the sample DVD by mail or downloaded the sample DVD but did not purchase the full DVD: (1) targeted email, (2) a DVD that contained additional features, or (3) a telephone call to prospective customers. The 474 respondents who did not initially purchase the full DVD were randomly assigned to one of the three sales approaches. The results, in terms of purchases of the full-program DVD, are as follows:

c. At the 0.05 level of significance, is there evidence of a difference in the proportion of DVDs purchased on the basis of the sales strategy used?
d. On the basis of the results of (c), which sales approach do you think the company should use in the future? Explain the rationale for your decision.

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TYPE OF MEDIA USED Email PURCHASED Yes No Total Total 37 474 511 Mailing 26 227 253 247 258 SALES APPROACH More Targeted Complete Telephone DVD 17 141 ACTION Purchase Don't Email Call Total 18 140 40 434 153 purchase Total 158 158 158 474