Question: #9.65: In 2006, Visa wanted to move away from its long-running television advertising theme of “Visa, It’s everywhere you want to be.” During the Winter Olympics, Visa featured Olympians in commercials with a broader message, including security, check cards, and payment technologies such as contactless processing. One of the first commercials features snowboarder Lindsey Jacobellis being coached to calm down before a big race by imagining that her Visa Check Card got stolen. A Key metric for the success of television advertisement is the proportion of viewers who “like the ads a lot.” Harris Ad Research Service conducted a study of 903 adults who viewed the new Visa advertisement and reported that 54 indicated that they “liked the ad a lot.” According to Harris, the proportion of a typical television advertisement receiving the “like the ad a lot” score is 0.21 (data extracted from T. Howard, “Visa to Change Strategies in Upcoming Ads,” usatoday.com, January 23, 2006).

a) Use the six-step critical value approach to hypothesis testing and a 0.05 level of significance to try to prove that the new Visa ad is less successful than a typical television advertisement.

b) Use the five-step p-value approach to hypothesis testing and a 0.05 level of significance to try to prove that the new Visa ad is less successful than a typical television advertisement.

c) Compare the results of (a) and (b).