9. A west coast restaurant chain wanted to try out three different promotions to

Question

9. A west coast restaurant chain wanted to try out three different promotions to increase midweek sales. The irst promotion was "in house" specials with no advertising, the second promotion was advertising these same specials in local newspapers, and the third promotion was advertising the same specials with a direct mail advertisement. Eighteen restaurants were randomly selected and then placed randomly into one of the three groups. After the promotions were put into run, sales figures were obtained for a 14 day p each. The sales, in thousands of dollars, are displayed below directly following Promotion #1 Promotion #2 Promotion #3 P00215 4.0s 5.1 4.8 5.1 5.7 4.8 6.7 AJOVA 6.2 7.4 5.6 6 (a) Is there sufficient evidence at the 1% significance level to suggest there is a difference in the mean sales between the three policies? (b) Determine (if possible) which policy is different from the others?

Explanation / Answer

SolutionA:

Ho:All the 3 promotion group means are equal

H1:atleast one of the promotion group means are different

alpha=0.01

F(2,15)=8.803,p=0.003

p<0.01

Reject Ho

Accept H1

There is suffcient evidence at 1% level of significance to conclude that there is a difference in mean sales between the 3 policies

Solutionb:

promotion3 is differnt from others as average is high comapred to others

promotion3 average=6.48

Soluion2a:

Solution2b:

2 processes are similar used to check whetehr the mean differences of 3 or moe groups are equal.

Equality of variances is assumed

ANOVA Source of Variation SS df MS F P-value F crit Between Groups 6.167778 2 3.083889 8.802728 0.002958 6.358873 Within Groups 5.255 15 0.350333 Total 11.42278 17

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