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 e-mail containing a link to a website from which sample material could be downloaded. Of those who responded to either the mailing or the e-mail, 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 e-mail, (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 each 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 PURCHASED MailingE-mai Yes No Total 37 227 247 474 253 258511 26 SALES APPROACH More Targeted Complete Telephone DVD 17 141 Call Total ACTION Purchase Don't E-mail 18 140 40 434 153 purchase Total 158 158 158 474