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A Discussion On Significance Testing

A marketing analyst was studying the readability of two advertisements, each produced by a major company, and printed in the newspaper. A random sample of 100 marketing professors was selected. Fifty were randomly assigned to read the advertisement produced by Company A, and the other fifty were to read the advertisement produced by Company B. The results are summarized in the contingency table below. Is there evidence of a significant difference in the proportion of the marketing professors who reviewed the advertisements produced by A and B and concluded the advertisements were readable? Test at the .10 level of significance.

......................COMPANY A......................COMPANY B......................TOTAL
...........................Oi......EI..............................Oi.......EI........................Oi.....EI
Yes.....................19.....20..............................21.......20.......................40....40
No.......................31.....30..............................29.......30.......................60....60
Total....................50.....50..............................50......50.......................100...100

Solution Summary

This solution uses significance testing at a .10 level of significance to determine whether the is evidence of a significant difference in the proportion of the marketing professors who reviewed the advertisements produced by A and B and concluded the advertisements were readable

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