Question

In: Statistics and Probability

Question A: The marketing manager of a company producing a new cereal aimed for children wants...

Question A:

The marketing manager of a company producing a new cereal aimed for children wants to examine the effect of the color and shape of the box's logo on the approval rating of the cereal. He combined 3 colors and 2 shapes to produce a total of 6 designs. Each logo was presented to 3 different groups (a total of 18 groups) and the approval rating for each was recorded and is shown below. The manager analyzed these data using the α = 0.05 level of significance for all inferences, and a partially completed 2-way ANOVA table is also provided below.

COLORS
Red Green Blue
54 67 36
Circle 44 61 40
SHAPES 49 64 44
34 56 36
Square 36 57 33
35 58 30

Analysis of Variance

Source              df              SS                  MS               F

Shapes 392.00

Colors                           1897.00                                                        

Interaction 49.00                                                                                             

Error

Total   2460.00                     

--------------------------------------------------------------------------------

1) What is the sum of squares due to Error ?(10 points)

2) What are the degrees of freedom for the factor Colors and the Error ? (10 points)

3) How many treatment combinations are there in the experiment and how many replicates for each treatment combination? (10 points)

4) Perform the F- test on 'Shapes'. Is the factor 'Shapes' significant (α = 0.05)? Please show all the relevant calculations. (10 points)

5) Perform the F- test on 'Interaction'. Is 'Interaction' significant (α=0.05)? Please show all the relevant calculations.(10 points)

Solutions

Expert Solution

Solution:

There are two factors which are color and shape.

Color have three levels red, green and yellow and shapes have two levels circle and square.

THis is the problem of two way anova.

The formulaes for completing ANOVA table is,

a) Sum of squares for shapes (SSshapes) = SStotal - sum of (SSshapes + SScolors + SSinteraction)

= 2460.00 - (1897.00 + 49.00 + 122.00) = 392.00

b) Degrees of freedoms :

dfshapes = no. of levels for shapes - 1 = 2-1 = 1

dfcolors = no. of levels of colors - 1 = 3-1 = 2

dfinteraction = 2*1= 2

dftotal = 18-1 = 17

dferror = 17 - 2-2-1 = 12

Now to find Mean sum of squares.

MSshapes = SSshapes / dfshapes = 392.00 / 1 = 392.00

MScolors = SScolors / dfcolors = 1897.00 / 2 = 948.50

MSerror = SSerror / dferror = 122.00 / 12 = 10.17

d) F-test for shapes :

Hypothesis :

H0 : There is no difference in population mean for rows.

H1 : There is difference in population mean for rows.

Assume alpha = level of significane = 0.05  

Fshapes = MSshapes / MSerror = 392.00 / 10.17 = 38.56

Now we have to find p-value for F-test.

P-value we can find in excel.

syntax :

=FDIST(x, deg_freedoms1, deg_freedoms2)

x = 38.56

deg_freedoms1 = 1

deg_freedoms2 = 12

P-value = 0.0000

P-value < alpha

Reject H0 at 5% level of significance.

COnclusion : Atleast one of the population mean for rows is differ than 0.

5.

Hypothesis :

H0 : There is no difference in population mean for columns.

H1 : There is difference in population mean for columns.

Assume alpha = level of significane = 0.05  

Fcolors = MScolors / MSerror = 948.50 / 10.17 = 93.30

Now we have to find p-value for F-test.

P-value we can find in excel.

syntax :

=FDIST(x, deg_freedoms1, deg_freedoms2)

x = 93.30

deg_freedoms1 = 1

deg_freedoms2 = 12

P-value = 0.0000

P-value < alpha

Reject H0 at 5% level of significance.

COnclusion : Atleast one of the population mean for columns is differ than 0.

The complete ANOVA table will be,

Analysis of Variance

Source DF Adj SS Adj MS F-Value P-Value
shapes 1 392.00 392.00 38.56 0.000
colors 2 1897.00 948.50 93.30 0.000
shapes*colors 2 49.00 24.50 2.41 0.132
Error 12 122.00 10.17
Total 17 2460.00


Related Solutions

The marketing manager of a company producing a new cereal aimed for children wants to examine...
The marketing manager of a company producing a new cereal aimed for children wants to examine the effect of the color and shape of the box's logo on the approval rating of the cereal. He combined 3 colors and 2 shapes to produce a total of 6 designs. Each logo was presented to 3 different groups (a total of 18 groups) and the approval rating for each was recorded and is shown below. The manager analyzed these data using the...
In a study of marketing to children, researchers examine cereal placement on grocery store shelves. The...
In a study of marketing to children, researchers examine cereal placement on grocery store shelves. The explanatory variable is cereal type (child vs. adult). The response variable is shelf placement (bottom shelf, middle shelf, top shelf) Following is the two-way table for the 77 cereals in this random sample of cereals. Conduct an appropriate Hypothesis Test to see if there is association between Cereal Type and Shelf placement             1. State the null and alternative hypotheses.             2. What is...
A marketing manager for a cell phone company claims that more than 55% of children aged...
A marketing manager for a cell phone company claims that more than 55% of children aged 8−12 have cell phones. In a survey of 802 children aged 8−12 by the National Consumers League, 449 of them had cell phones. Can you conclude that the manager’s claim is true? Use the α = 0.01 level of significance
an investigator wants to determine if a new program aimed at reducing the overall number of...
an investigator wants to determine if a new program aimed at reducing the overall number of pregnancies in a highly populated area is effective (reducing average births below 6 per household). In order to carry out the investigation, the investigator surveys 20 participants in the program and finds the average number of births is 4.7 with a sample standard deviation of 0.9 births. carry out a test of hypothesis to test the investigator’s claim by answering the following with alpha=.01...
Assume you are the global marketing manager for an Irish technology company that wants to enter...
Assume you are the global marketing manager for an Irish technology company that wants to enter the Chinese market. Assess the political, legal, and regulatory issues your company must consider. Determine if your company should proceed with entering the Chinese market. Explain.
An investigator wants to determine if a new exercise program aimed at reducing the overall mean...
An investigator wants to determine if a new exercise program aimed at reducing the overall mean body weight among senior citizens is more effective than no exercise. A survey of 81 participants in the program finds their average body weight to be 150 lbs with a sample standard deviation of 9 lbs, while 100 senior citizens with no exercise had a sample bodyweight of 200 lbs with a sample standard deviation of 10 lbs. Complete the following to test the...
A firm is considering producing a new product.Prior to producing,the firm can conduct a marketing campaign...
A firm is considering producing a new product.Prior to producing,the firm can conduct a marketing campaign (e.g., advertise heavily) or not. Suppose that a marketing campaign costs $1 million. Suppose that if the product is marketed and produced, it will generate revenues of $8 million while costing $2 million to produce; so profit will be $5 million (= $(8 − 2 − 1) million) . If the product is marketed, but not produced, it will generate no revenue and no...
Question 10 (1 point) A restaurant wants to test a new in-store marketing scheme in a...
Question 10 (1 point) A restaurant wants to test a new in-store marketing scheme in a small number of stores before rolling it out nationwide. The new ad promotes a premium drink that they want to increase the sales of. 14 locations are chosen at random and the number of drinks sold are recorded for 2 months before the new ad campaign and 2 months after. The average difference in nationwide sales quantity before the ad campaign to after (after...
Your company wants to build a new plant in China to increase its capacity for producing...
Your company wants to build a new plant in China to increase its capacity for producing a new polymer that is being used widely in consumer goods there. To build the plant, the company would need to pay $175,000,000 now, $150,000,000 at the beginning of next year (i.e. or you can think of it as the end of the first year, whichever you like), and $125,000,000 at the end of the second year to have the plant built. It will...
You are marketing manager for a noodle company. Your company is launching a new noodle soon...
You are marketing manager for a noodle company. Your company is launching a new noodle soon called ‘Amazing Thai’. This noodle tastes delicious and uses Thai ingredient. Define the term “target market”, and suggest a potential target market for new ‘Amazing Thai” noodle in 300 words.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT