Question
Light Up My Life (LUML) Lighting is a manufacturer of low-energy lightbulbs for consumers. They are considering two new advertisements. The ad agency created a
Light Up My Life (LUML) Lighting is a manufacturer of low-energy lightbulbs for consumers. They are considering two new advertisements. The ad agency created a before/after test for the ads with two groups of 1000 people each. Each group would be exposed to the current ad for a month, and then in the 2nd and 3rd months, the test group would see the new ads, while the control group would continue to see the original ad. This test design would compensate for any differences in the two randomly selected groups. Results from the experiment are as follows:
| Test Group | Control Group | |
| (units sold) | (units sold) | |
| July (Original Ad) | 5370 | 6000 |
| August (New Ad 1) | 6510 | 6400 |
| September (New Ad 2) | 5700 | 5000 |
What is the underlying difference in demand between the test group and the control group?
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South Western Federal Taxation 2017 Comprehensive
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young
40th Edition
9781305874169
