Problem 4. (11 points) Remaining time: 119:00 (min:sec) A/B Testing - The Peaches Skin Care company is developing a new

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Problem 4 11 Points Remaining Time 119 00 Min Sec A B Testing The Peaches Skin Care Company Is Developing A New 1 (106 KiB) Viewed 15 times

Problem 4. (11 points) Remaining time: 119:00 (min:sec) A/B Testing - The Peaches Skin Care company is developing a new marketing campaign for one of its skin care products. Because the skin care market is crowded and complex and because advertising is a large expense, the company decides to use a procedure called A/B testing on its new advertisement. To use A/B testing, the marketing team at the company obtains a group of 390 potential customers for the product. They randomly assign 245 potential customers to watch the advertisement for the product (condition A) and 145 potential customers to watch a public service announcement (PSA) of the same length and size as the advertisement (condition B). They then record whether the potential customer purchased the product or not. 1. The A/B testing procedure is an A. The marketing team should have recorded how many times the potential customer saw the advertisement. B. The marketing team only recorded whether the potential customers purchased the product or not. C. The marketing team divided the potential customers randomly into two groups and assigned them to condition A or condition B. ? ? D. Potential customers could tell whether they were watching an advertisement or a PSA. 2. Match each aspect of the description of A/B testing to the appropriate statistical term. Note, you won't use all of the available phrases from the right column. ? ? because ? 4. Cases ? ? 1. Control group 2. Treatment group 3. Response variable 5. Population of interest 6. Explanatory variable A. Whether the advertisement is effective or not B. Potential customers who watched the advertisement C. Whether the potential customer watched an advertisement or a PSA D. All potential customers E. Potential customers who watched the PSA F. 390 potential customers G. Whether the potential customer purchased the product H. The number of potential customers who purchased the product 3. Why does the marketing team randomly assign participants to condition A or condition B? A. To reduce unconscious bias when evaluating a customer's response advertising. B. To make the product available to as many potential customers as possible. C. So potential customers will not know if they are participating in the study.
B. The marketing team only recorded whether the potential customers purchased the product or not. C. The marketing team divided the potential customers randomly into two groups and assigned them to condition A or condition B. D. Potential customers could tell whether they were watching an advertisement or a PSA. 2. Match each aspect of the description of A/B testing to the appropriate statistical term. Note, you won't use all of the available phrases from the right column. ? 1. Control group ? 2. Treatment group ? 3. Response variable ? 4. Cases ? ? 5. Population of interest 6. Explanatory variable A. Whether the advertisement is effective or not B. Potential customers who watched the advertisement C. Whether the potential customer watched an advertisement or a PSA D. All potential customers E. Potential customers who watched the PSA F. 390 potential customers G. Whether the potential customer purchased the product H. The number of potential customers who purchased the product 3. Why does the marketing team randomly assign participants to condition A or condition B? A. To reduce unconscious bias when evaluating a customer's response to advertising. B. To make the product available to as many potential customers as possible. C. So potential customers will not know if they are participating in the study D. To evenly distribute confounding factors in both the condition A and condition B groups. 4. Based on the results of their A/B testing, will marketing executives be able to conclude that watching the advertisement increases sales? Select Yes or No and a reason for your choice. because A. Random assignment of conditions by the marketing team allows us to infer a causal relationship. B. A/B testing is a popular technique in marketing analysis. C. A sample size of 390 potential customers is too small to make any firm conclusion. D. Customers may buy the product without seeing either the advertisement or the PSA. Remaining time: 118:57 (min:sec)