Question

• Please finish the following assignment in Excel
• Does price affect sales?
• Does Advertising affect sales?
• Are there any interaction effects between price and advertising? Show it with graph.

• 			Price
  		Low	Medium	High
  	Low	41	21	15
  Adv		25	20	14
  		23	16	13
  	Medium	28	28	14
  		30	22	13
  		32	18	12
  	High	50	34	13
  		51	40	13
  		52	32	13

Answer 1

Steps in excel : (office button, excel options, add ins, data analysis tool pack)

Data, data analysis, two factor anova with replication (as the given data is two factor each with 3 levels. The factors are price and advertisement. The 3 levels are low, medium and high)

as p-value for the advertising effects as well as for prices are very low as compared to 0.05,we reject the null hypothesis and conclude there is significant effect of these factors on the sales. Also p-value for interaction is 0.001<0.05 so null hypothesis is rejected and we conclude there is valid interaction effect.

Graph : select the averages and go to insert, bar, 2d bar to display the graph

explanations : the blue bar describes how the advertising effect when on low level varies over the price at different levels. For example the blue bar corresponding to 1 has a value 29.6667 that is, advertising effect at lower price has an average of 29.667 sales. Similar descriptions goes for the other bars.