Question

In: Statistics and Probability

The Coca-Cola Company introduced New Coke in 1985. Within three months of this introduction, negative consumer...

The Coca-Cola Company introduced New Coke in 1985. Within three months of this introduction, negative consumer reaction forced Coca-Cola to reintroduce the original formula of Coke as Coca-Cola Classic. Suppose that two years later, in 1987, a marketing research firm in Chicago compared the sales of Coca-Cola Classic, New Coke, and Pepsi in public building vending machines. To do this, the marketing research firm randomly selected 10 public buildings in Chicago having both a Coke machine (selling Coke Classic and New Coke) and a Pepsi machine.

The Coca-Cola Data and a MINITAB Output of a Randomized Block ANOVA of the Data:

Building
1 2 3 4 5 6 7 8 9 10
Coke Classic 40 112 133 36 139 32 65 210 106 75
New Coke 6 105 53 53 41 23 33 158 58 136
Pepsi 23 84 103 43 52 43 65 121 65 100

Two-way ANOVA: Cans versus Drink, Building

Source DF SS MS F P
Drink 2 7,534.5 3,767.23 4.69 .023
Building 9 53,215.0 5,912.77 7.36 .000
Error 18 14,455.5 803.09
Total 29 75,205.0
Descriptive Statistics: Cans
Variable Drink Mean
Cans Coke Classic 94.8
New Coke 62.6
Pepsi 69.9

(a-1) Calculate the value of the test statistic and p-value. (Round "test statistic" value to 2 decimal places and "p-value" to 3 decimal places.)

Test statistic
p-value

  

(a-2) At the 0.05 significance level, what is the conclusion?

Reject H0
Do not reject H0

(b) What is the Tukey simultaneous 95 percent confidence interval for the following? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Confidence interval
Coke Classic - New Coke [ __,__ ]
Coke Classic – Pepsi [ __, __]
New Coke – Pepsi [ __, __]

Solutions

Expert Solution

MINITAB used. ( the ANOVA result already given is not correct for the give data)

(a-1) Calculate the value of the test statistic and p-value. (Round "test statistic" value to 2 decimal places and "p-value" to 3 decimal places.)

Test statistic

3.16

p-value

0.067

  

(a-2) At the 0.05 significance level, what is the conclusion?

Reject H0

Answer:

Do not reject H0

(b) What is the Tukey simultaneous 95 percent confidence interval for the following? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Confidence interval

Coke Classic - New Coke

[ -3.10,59.50]

Coke Classic – Pepsi

[ -6.40,56.20]

New Coke – Pepsi

[ -34.60,28.00]

General Linear Model: cans versus Building, drink

Method

Factor coding

(-1, 0, +1)

Factor Information

Factor

Type

Levels

Values

Building

Fixed

10

1, 2, 3, 4, 5, 6, 7, 8, 9, 10

drink

Fixed

3

Coke Classic, New Coke, Pepsi

Analysis of Variance

Source

DF

Adj SS

Adj MS

F-Value

P-Value

Building

9

46530

5170.0

6.88

0.000

drink

2

4754

2376.9

3.16

0.067

Error

18

13533

751.8

Total

29

64817

Model Summary

S

R-sq

R-sq(adj)

R-sq(pred)

27.4194

79.12%

66.36%

42.00%

Tukey Simultaneous Tests for Differences of Means

Difference of drink Levels

Difference
of Means

SE of
Difference

Simultaneous
95% CI

T-Value

Adjusted
P-Value

New Coke - Coke Classic

-28.2

12.3

(-59.50, 3.10)

-2.30

0.082

Pepsi - Coke Classic

-24.9

12.3

(-56.20, 6.40)

-2.03

0.134

Pepsi - New Coke

3.3

12.3

(-28.00, 34.60)

0.27

0.961

Individual confidence level = 98.00%


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