Question

oes Cable Video on Demand (VOD D4+) increase add effectiveness? A recent VOD study compared general TV and VOD D4+ audiences after viewing a brand add. Data were collected on whether the viewer indicated that the add made them want to visit the brand website. The results were:

	Made me want to visit the brand website	Made me want to visit the brand website
Viewing Audience	Yes	No
VOD D4+	149	108
General TV	36	168

1. Set up the null and alternative hypothesis to try to determine whether add impact is stronger following VOD D4+ viewing than following general TV viewing.
2. Conduct the hypothesis test defined in (1), using the 0.05 level of significance.
3. Does the results of your test in (2) make it appropriate to claim the ad impact is stronger following VOD D4+ than following general TV viewing?

Answer 1

Ho:   p1 - p2 =   0          
Ha:   p1 - p2 >   0          
                  
sample #1   ----->   experimental          
first sample size,     n1=   257          
number of successes, sample 1 =     x1=   149          
proportion success of sample 1 , p̂1=   x1/n1=   0.5798          
                  
sample #2   ----->   standard          
second sample size,     n2 =    204          
number of successes, sample 2 =     x2 =    36          
proportion success of sample 1 , p̂ 2=   x2/n2 =    0.176          
                  
difference in sample proportions, p̂1 - p̂2 =     0.5798   -   0.1765   =   0.4033
                  
pooled proportion , p =   (x1+x2)/(n1+n2)=   0.4013          
                  
std error ,SE =    =SQRT(p*(1-p)*(1/n1+ 1/n2)=   0.0460          
Z-statistic = (p̂1 - p̂2)/SE = (   0.403   /   0.0460   ) =   8.7744
                     
p-value =        0.0000   [excel function =NORMSDIST(-z)]      
decision :    p-value<α,Reject null hypothesis               
                  
Conclusion:   There is enough evidence to   ad impact is stronger following VOD D4+ than following general TV viewing.

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