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An advertising company wants to test the effectiveness of a TV advertisement. A focus group of...

An advertising company wants to test the effectiveness of a TV advertisement. A focus group of 10 potential consumers is randomly selected. Each person is surveyed before and after viewing the TV ad and assigned a score (both before and after) to measure the likelihood that they would buy the advertised product. A higher score means the consumer is more likely to buy the product. Population standard deviation (sigma) is unknown. The hypothesis test yields a p-value = .0012.

a.Write out Ho and Ha.

b.)Can we reject Ho at the 99% confidence level? Can we be 99% confident that the ad is effective? CAREFULLY EXPLAIN WHY OR WHY NOT.

Remember: Effective means that consumers are more likely to buy the product (higher score) AFTER they view the ad.

math   Statistics-And-Probability   
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Answer #1

a)

Ho: µd ≤ 0

Ha: µd > 0

b)

p value = 0.0012 < α= 0.01, so reject Ho

we reject Ho at the 99% confidence level

we can be 99% confident that the ad is effective

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