Question

In: Math

A marketing organization wishes to study the effects of four sales methods on weekly sales of...

A marketing organization wishes to study the effects of four sales methods on weekly sales of a product. The organization employs a randomized block design in which three salesman use each sales method. The results obtained are given in the following table, along with the Excel output of a randomized block ANOVA of these data.

Salesman, j
Sales Method, i A B C
1 39 32 28
2 43 30 25
3 31 24 19
4 33 20 13
ANOVA: Two-Factor without Replication
SUMMARY Count Sum Average Variance
Method 1 3 99 33.0000 31.0000
Method 2 3 98 32.6667 86.3333
Method 3 3 74 24.6667 36.3333
Method 4 3 66 22.0000 103.0000
Salesman A 4 146 36.50 30.3333
Salesman B 4 106 26.50 30.3333
Salesman C 4 85 21.25 44.2500
ANOVA
Source of Variation SS df MS F P-Value F crit
Rows 281.5833 3 93.8611 16.98 .0025 4.7571
Columns 480.1667 2 240.0833 43.43 .0003 5.1433
Error 33.1667 6 5.52778
Total 794.9167 11

(a) Test the null hypothesis H0 that no differences exist between the effects of the sales methods (treatments) on mean weekly sales. Set α = .05. Can we conclude that the different sales methods have different effects on mean weekly sales?

F = 16.98, p-value = .0025; (Click to select)RejectDo not reject H0: there is (Click to select)a differenceno difference in effects of the sales methods (treatments) on mean weekly sales.

(b) Test the null hypothesis H0 that no differences exist between the effects of the salesmen (blocks) on mean weekly sales. Set α = .05. Can we conclude that the different salesmen have different effects on mean weekly sales?

F = 43.43, p-value = .0003; (Click to select)RejectDo not reject H0: salesman (Click to select)dodo not have an effect on sales

(c) Use Tukey simultaneous 95 percent confidence intervals to make pairwise comparisons of the sales method effects on mean weekly sales. Which sales method(s) maximize mean weekly sales? (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)

Method 1 – Method 2: [, ]
Method 1 – Method 3: [, ]
Method 1 – Method 4: [, ]
Method 2 – Method 3: [, ]
Method 2 – Method 4: [, ]
Method 3 – Method 4: [, ]

Solutions

Expert Solution

a)

F = 16.98, p-value = .0025; (Reject Ho): there is a difference in effects of the sales methods (treatments) on mean weekly sales.

b)

F = 43.43, p-value = .0003; (Reject H0: salesman do have an effect on sales

c)

Level of significance 0.05
no of treatments 4
df error 6
MSE 5.5278
q-statistic value 4.8956

critical value = q*√(MSE/2*(1/ni+1/nj))=6.65

confidence interval = mean difference ± critical value

if confidence interval contans zero, then means are not different.

confidence interval
population mean difference critical value lower limit upper limit result
µ1-µ2 0.33 6.65 -6.31 6.98 means are not different
µ1-µ3 8.33 6.65 1.69 14.98 means are different
µ1-µ4 11.00 6.65 4.35 17.65 means are different
µ2-µ3 8.00 6.65 1.35 14.65 means are different
µ2-µ4 10.67 6.65 4.02 17.31 means are different
µ3-µ4 2.67 6.65 -3.98 9.31 means are not different

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