# Shanks Inc., a nationwide advertising firm, wants to know whether the size of an advertisement and the

## Question:

Shank’s Inc., a nationwide advertising firm, wants to know whether the size of an advertisement and the color of the advertisement make a difference in the response of magazine readers. A random sample of readers is shown ads of four different colors and three different sizes. Each reader is asked to give the particular combination of size and color a rating between 1 and 10. Assume that the ratings follow the normal distribution. The rating for each combination is shown in the following table (for example, the rating for a small red ad is 2).

Is there a difference in the effectiveness of an advertisement by color and by size?

a. What are the null and alternate hypotheses?

b. What are the test statistics?

c. What are the p-values?

d. Using a .05 significance level, what is your decision regarding the null hypotheses?

e. Interpret the result.

## Step by Step Answer:

**Related Book For**

## Statistical Techniques In Business And Economics

**ISBN:** 9781260239478

18th Edition

**Authors:** Douglas Lind, William Marchal, Samuel Wathen