solution

Creating menus to influence others. Refer to the Journal of Consumer Research (March 2003) study on influencing the choices of others by offering undesirable alternatives, Exercise 7.80 (p. 426). In another experiment conducted by the researcher, 96 subjects were asked to imagine that they had just moved to an apartment with two others and that they were shopping for a new appliance (e.g., television, microwave oven). Each subject was asked to create a menu of three brand choices for their roommates; then subjects were randomly assigned (in equal numbers) to one of three different “goal” conditions—(1) create the menu in order to influence roommates to buy a preselected brand, (2) create the menu in order to influence roommates to buy a brand of your choice, and (3) create the menu with no intent to influence roommates. The researcher theorized that the menus created to influence others would likely include undesirable alternative brands. Consequently, the number of menus in each goal condition that was consistent with the theory was determined. The data are summarized in the table below. Analyze the data for the purpose of determining whether the proportion of subjects who selected menus consistent with the theory depends on goal condition. Use  = .01.

Exercise 7.80

Choosing portable grill displays. Refer to the Journal of Consumer Research (March 2003) experiment on influencing the choices of others by offering undesirable alternatives, Exercise 3.23 (p. 171). Recall that each of 124 college students selected three portable grills from five to display on the showroom floor. The students were instructed to include Grill #2 (a smaller-sized grill) and select the remaining two grills in the display to maximize purchases of Grill #2. If the six possible grill display combinations (1-2-3, 1-2-4, 1-2-5, 2-3-4, 2-3-5, and 2-4-5) were selected at random, then the proportion of students selecting any display was 1 6 = .167. One theory tested by the researcher was that the students would tend to choose the three-grill display so that Grill #2 was a compromise between a more desirable and a less desirable grill (i.e., display 1-2-3, 1-2-4, or 1-2-5). Of the 124 students, 85 selected a three-grill display that was consistent with this theory. Use this in-formation to test the theory proposed by the researcher at  = .05.

Exercise 3.23

Investing in stocks. From a list of 15 preferred stocks recommended by your broker, you will select three to invest in. How many different ways can you select the three stocks from the 15 recommended stocks?