Question

In: Statistics and Probability

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 31 23
2 41 28 28
3 31 23 15
4 33 19 16
ANOVA: Two-Factor without Replication
SUMMARY Count Sum Average Variance
Method 1 3 93 31.0000 64.0000
Method 2 3 97 32.3333 56.3333
Method 3 3 69 23.0000 64.0000
Method 4 3 68 22.6667 82.3333
Salesman A 4 144 36.00 22.6667
Salesman B 4 101 25.25 28.2500
Salesman C 4 82 20.50 37.6667
ANOVA
Source of Variation SS df MS F P-Value F crit
Rows 236.9167 3 78.9722 16.43 .0027 4.7571
Columns 504.5000 2 252.2500 52.49 .0002 5.1433
Error 28.8333 6 4.80556
Total 770.2500 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 = 16.43, p-value = .0027; (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 = 52.49, p-value = .0002; (Click to select)Do not rejectReject H0: salesman (Click to select)do notdo 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) 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 = 16.43, p-value = .0027; (Click to select)Reject H0: there is (Click to select)a 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 = 52.49, p-value = .0002; (Click to select)Reject H0: salesman (Click to select)do 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:

[-7.53,4.87 ]

Method 1 – Method 3:

[1.80, 14.20]

Method 1 – Method 4:

[2.13,14.53 ]

Method 2 – Method 3:

[3.13, 15.53]

Method 2 – Method 4:

[3.47, 15.87]

Method 3 – Method 4:

[-5.87,6.53 ]

MINITAB used:

General Linear Model: sales versus Salesman, Method

Method

Factor coding

(-1, 0, +1)

Factor Information

Factor

Type

Levels

Values

Salesman

Fixed

3

A, B, C

Method

Fixed

4

1, 2, 3, 4

Analysis of Variance

Source

DF

Adj SS

Adj MS

F-Value

P-Value

Salesman

2

504.50

252.250

52.49

0.0002

Method

3

236.92

78.972

16.43

0.0027

Error

6

28.83

4.806

Total

11

770.25

Model Summary

S

R-sq

R-sq(adj)

R-sq(pred)

2.19216

96.26%

93.14%

85.03%

Comparisons for sales

Tukey Pairwise Comparisons: Method

Grouping Information Using the Tukey Method and 95% Confidence

Method

N

Mean

Grouping

2

3

32.3333

A

1

3

31.0000

A

3

3

23.0000

B

4

3

22.6667

B

Means that do not share a letter are significantly different.

Tukey Simultaneous Tests for Differences of Means

Difference
of Method
Levels

Difference
of Means

SE of
Difference

Simultaneous
95% CI

T-Value

Adjusted
P-Value

2 - 1

1.33

1.79

(-4.87, 7.53)

0.74

0.876

3 - 1

-8.00

1.79

(-14.20, -1.80)

-4.47

0.017

4 - 1

-8.33

1.79

(-14.53, -2.13)

-4.66

0.014

3 - 2

-9.33

1.79

(-15.53, -3.13)

-5.21

0.008

4 - 2

-9.67

1.79

(-15.87, -3.47)

-5.40

0.007

4 - 3

-0.33

1.79

(-6.53, 5.87)

-0.19

0.997

Individual confidence level = 98.66%


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