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Data from Finer Diner, Kim’s Kitchen, and Pete’s Place was used to find out if t

ID: 3174722 • Letter: D

Question

Data from Finer Diner, Kim’s Kitchen, and Pete’s Place was used to find out if there is a difference in the number of calories in their desserts. Set alpha to 0.05 and determine if there is a difference in the mean number of calories.

Restaurant

Finer Diner

Kim’s Kitchen

Pete’s Place

Dessert 1

420

1006

880

Dessert 2

570

852

800

Dessert 3

636

1152

508

Dessert 4

377

1255

785

Dessert 5

258

1366

702

Use your findings to complete this exercise.

Create an outline in which you:

1. Identify ways to makert desserts for the Finer Diner to give them a competitive edge over their competition

2. Illustrate potential changes in the lineup of desserts at Finer Diner that could solicit more sales

3. Propose marketing ideas directed specifically at the competition's customers in order to them to try desserts at the Finer Diner.

Restaurant

Finer Diner

Kim’s Kitchen

Pete’s Place

Dessert 1

420

1006

880

Dessert 2

570

852

800

Dessert 3

636

1152

508

Dessert 4

377

1255

785

Dessert 5

258

1366

702

Explanation / Answer

Here we wanted to check whether there is a significant difference between the number of calories in the desserts of the three places. So the hypothesis of interest is,

H0:µ1= µ2=µ3 and Ha: At least one mean is significantly different.

Here the number of group is more than 2 and we are testing for mean so an ANOVA test is the most appropriate test.

Using SPSS the obtained output is given below.

Oneway

ANOVA

Val

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

1145482.133

2

572741.067

20.405

.000

Within Groups

336825.600

12

28068.800

Total

1482307.733

14

From the above output we can see that the p-value for the above test is 0.000 which is smaller than the considered significance level of 0.05 thus we are rejecting the null hypothesis concluding that at least one mean is significantly different.

            As at least one mean is significantly different so we need to perform a Post-Hoc test. The obtained output is given below,

Post Hoc Tests

Multiple Comparisons

Dependent Variable:   Val

Tukey HSD

(I) Factor

(J) Factor

Mean Difference (I-J)

Std. Error

Sig.

95% Confidence Interval

Lower Bound

Upper Bound

Fine Diner

Kim's Kitchen

-674.00000*

105.95999

.000

-956.6868

-391.3132

Pete's Place

-282.80000*

105.95999

.050

-565.4868

-.1132

Kim's Kitchen

Fine Diner

674.00000*

105.95999

.000

391.3132

956.6868

Pete's Place

391.20000*

105.95999

.008

108.5132

673.8868

Pete's Place

Fine Diner

282.80000*

105.95999

.050

.1132

565.4868

Kim's Kitchen

-391.20000*

105.95999

.008

-673.8868

-108.5132

*. The mean difference is significant at the 0.05 level.

Homogeneous Subsets

Val

TukeyHSDa

Factor

N

Subset for alpha = 0.05

1

2

3

Fine Diner

5

452.2000

Pete's Place

5

735.0000

Kim's Kitchen

5

1126.2000

Sig.

1.000

1.000

1.000

Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 5.000.

            The above output indicates that all the pairs are significantly different from each other. Moreover the Fine Diner has the smallest mean.

            Now we need to identify an outline which will give Fine Diner a competitive edge over the other competitions as well we need to identify potential improvements and marketing ideas to increase the sales.

            I think the answer lies in above results. From the above results it is clear that the calorie content in the desserts of Fine Diner is significantly lower than the other places. Nowadays people are conscious about the calorie so Fine Diner can take this as their marketing strategy. They can show that their product gives really low calorie and thus anyone can try it. That will give the edge in competition as well as increase sales over other competitions.

ANOVA

Val

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

1145482.133

2

572741.067

20.405

.000

Within Groups

336825.600

12

28068.800

Total

1482307.733

14