af/servlet/que?cbesblune-00348quiz action-takeQuizquiz probGuid-ONAPCOAB01010000

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af/servlet/que?cbesblune-00348quiz action-takeQuizquiz probGuid-ONAPCOAB01010000002e9081300a00008ick 3 1459821252295 DAAA69000152830D7CC491C5000 Attempts: Average: 18 7. Factorial experiment Permission-based e-mail marketing is the tactic of marketing one's products and services through e-mail but with the recipient's permission. This is in contrast to spamming, which is done without regard for the recipient's wishes. An industry expert offered the following advice to permission-based e-mail marketers: "The first key is to make your efforts more subscriber-centric and permission verified. .. The second key is to test, test, test. E-mail is so cost-effective, measurable, and immediate, that it is the perfect medium to improve through testing." [Source: Keyes, Whitney M. "Exact Target Shares Tip on E-Mail Marketing. Seattle Post-Intelligencer, June 25, 2008.] Heeding this advice, an e-mail marketer conducted a factorial experiment to test the effectiveness of two factors in generating sales. The first factor, called Factor A, consists of three different subject lines for the e-mail message. The second factor, called Factor B, is whether the e-mail message includes an Amazon.com voucher that the recipient can redeem if a purchase is made. The experimental units are batches of 20,000 e-mail addresses obtained from the marketer's database. E-mail messages, adjusted according to the factor levels, are sent to all the addresses in each batch, and the total sales amount for each batch is recorded as a measure of response. The results of the study are summarized by the corresponding sample means in the table that follows. All figures are in dollars.

Explanation / Answer

The number of observations is 60

Total sales amount for the units assigned with subject line 3 and no vocher is 143.10

Average sales amount of the units assigned with subject line 3 is 137.50

Average sales amount of the units assigned with no vocher is 147.93

Overall sample mean response of the experiment is (172.43+147.93)/2 = 160.115

Anova Table

The df of Factor A = no. of rows - 1 = 3-1=2

The df of Factor B = no. of columns -1 = 2 -1 =1

The df of interaction A and B is = (no. of treatments -1 ) - dfA - DfB

                                             = (6-1)-2-1 = 2

The df of Error = 59 - 2 - 1 - 2 = 52

Sum of square of Factor A = 16445.2/2 = 32890.2

Sum of square of Factor B = 9003.9/1 = 9003.9

Mean sum of square of Error = 245786.84/54 = 4551.60814

interaction F= 11776.6/4551.60814 = 2.587

Blanks:

Sum of square of Factor A = 16445.2/2 = 32890.2

Sum of square of Factor B = 9003.9/1 = 9003.9

Error sum of square = 245786.84

The df of all sum of square = 59

Mean sum of square of Factor A = 16445.2

Mean sum of square of Factor B = 9003.9

Mean sum of square of Factor A * B = 11776.6

Mean sum of square of Error = 4551.60814

Last Page:

Factor A : No significant since p value ( 0.0109) < alpha 0.05

Factor B: Significantsince p value (0.1064) > alpha (0.05)

Interaction A*B: No Signifiacantsince p value (0.0109 ) > alpha (0.05)

Surce of variation Sum of Squares Df Mean sum of square F Factor A 32890.4 2 16445.2 4.924 Factor B 9003.9 1 9003.9 2.696 Interaction 23553.2 2 11776.6 2.587 Error 245786.84 54 4551.608148 Total 311234.34 59

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