Risk Taking by Ad Agencies-Free-Samples-Myassignmenthelp.com

Question: Discuss about the Risk Taking by Ad Agencies. Answer: This study was conducted to examine the conditions under which the risks taken by the advertising companies are higher. This study was conducted on 64 account directors and heads of the advertising agencies of the creative departments from a standard directory. Each of the participants involved in the study were given an option to select one of the two plans implemented, Plan A and Plan B. The proportion of people selecting each of the plans for the participants of this study and the percentages of advertisers selecting the plans were tested for any significant differences. In a situation like this, the chi square test of independence is the most appropriate test. This test is used to test the existence of relationship between two categorical variables. Here, the two categorical variables are plans and participants. In a company, where shirts are manufactured, shirts can be categorized as Perfect, satisfactory and defective. Shirts are produced from three different machines. The number of shirts produced in a week that are perfect, satisfactory and defective from each of the three different types of machines can be recorded. Using the chi square test of independence, it can be tested whether the condition of the shirts manufactured depend on the machines that manufacture the shirts or not.