Question

 

Hamilton Beach has developed a new countertop blender line. At this stage, the development team is debating whether they should pursue a simple 1-Speed blender model or stick with their standard 4-speed approach. Jennifer, the Group Innovation Manager, is not certain which of the two versions will be the better choice. She commissions a marketing research study to help her with the decision. In this study, 10 test markets were chosen for the 1-Speed model and 10 markets for the 4-speed model. The scanner data result is also shown. Additional Computer output: provide the anova table

                                                  

1. Provide the hypothesis tested, the p-value, the decision rule, whether you accept or reject the chosen Ho at a confidence level of 95%.
2. What is the mean sales for each model? Verbally interpret these means.
3. Are the differences between the models statistically significant?
4. What is your recommendation to Jennifer?

The columns show:

1. Market Id#
2. Which version of the blender was offered in the market
3. Result from tracking the sales over the 4 week period following the participation in this study (in number of units sold)

 

Market	Speed	Sold units
1	1	20
2	1	71
3	1	86
4	1	257
5	1	48
6	1	86
7	1	86
8	1	343
9	1	36
10	1	86
11	4	120
12	4	343
13	4	600
14	4	48
15	4	600
16	4	171
17	4	429
18	4	171
19	4	343
20	4	514

Answer 1