A toy company is concerned that its distribution strategy is not working. Sean M
ID: 3023407 • Letter: A
Question
A toy company is concerned that its distribution strategy is not working. Sean Masterson, the marketing manager stated that one of the primary goals in the distribution of a particular toy is to keep the prices similar throughout all their distribution channels. To find out if their strategy is failing, the marketing department took a survey of 5 different outlets in three different channels.
The price results are in the following table: Store Web sales Discount stores Department stores
Store
Web sales
Discount stores
Department stores
1
12
15
19
2
13
17
17
3
14
14
16
4
12
18
20
5
15
17
19
Using ANOVA, determine if there is a significant difference in prices between the three channels. Mr. Masterson wants to be 90% confident, so list all the steps of the hypothesis test and do the calculations then write a memorandum to Mr. Masterson stating your conclusion and backing it up with statistical analysis.
Store
Web sales
Discount stores
Department stores
1
12
15
19
2
13
17
17
3
14
14
16
4
12
18
20
5
15
17
19
Explanation / Answer
Sol)
H0: All the treatments are equal
H1: Atleast one treatment are not same
H0: All the blocks are equal
H1: Atleast one block is not same
Alpha:10%
Test Statistic:
we use two way ANOVA
From Excel
Conclusion:
F cal=1.28 (for treatments)
F cal=14.16 (for blocks)
P>0.1 we accept H0(for treatments)
P<0.1 we reject the null hypothesis
Anova: Two-Factor Without Replication SUMMARY Count Sum Average Variance 1 3 46 15.33333 12.33333 2 3 47 15.66667 5.333333 3 3 44 14.66667 1.333333 4 3 50 16.66667 17.33333 5 3 51 17 4 Web sales 5 66 13.2 1.7 Discount stores 5 81 16.2 2.7 Department stores 5 91 18.2 2.7 ANOVA Source of Variation SS df MS F P-value F crit Rows 11.06667 4 2.766667 1.276923 0.355036 2.806426 Columns 63.33333 2 31.66667 14.61538 0.002132 3.113118 Error 17.33333 8 2.166667 Total 91.73333 14Related Questions
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