To compare the effectiveness of advertising campaigns A , B , and C , we define

Question

     To compare the effectiveness of advertising campaigns A, B, and C, we define two dummy variables. Specifically, we define the dummy variable DB to equal 1 if campaign B is used in a sales period and 0 otherwise. Furthermore, we define the dummy variable DC to equal 1 if campaign C is used in a sales period and 0 otherwise. Table presents the Excel and Excel add-in (MegaStat) output of a regression analysis of the Fresh demand data by using the model

In this model the parameter 4 represents the effect on mean demand of advertising campaign B compared to advertising campaign A, and the parameter 5 represents the effect on mean demand of advertising campaign C compared to advertising campaign A. Use the regression output to find and report a point estimate of each of the above effects and to test the significance of each of the above effects. Also, find and report a 95 percent confidence interval for each of the above effects. Interpret your results. (Round your answers to 4 decimal places.)

Here DA equals 1 if advertising campaign A is used and equals 0 otherwise. Describe the effect represented by the regression parameter 5.

The Excel output of the least squares point estimates of the parameters of the model of part c is as follows. (Round your answer to 4 decimal places.)

Use the Excel output to test the significance of the effect represented by 5. Interpret your results.

5 is significant at alpha = 0.1 and alpha = 0.05 because p-value = . Thus there is strong evidence that 5 (Click to select)is notis greater than 0.

     To compare the effectiveness of advertising campaigns A, B, and C, we define two dummy variables. Specifically, we define the dummy variable DB to equal 1 if campaign B is used in a sales period and 0 otherwise. Furthermore, we define the dummy variable DC to equal 1 if campaign C is used in a sales period and 0 otherwise. Table presents the Excel and Excel add-in (MegaStat) output of a regression analysis of the Fresh demand data by using the model

Explanation / Answer

Part-a

  The point estimate of the effect on the mean of campaign B compared to campaign A is

   b4 = .0.2695

  The point estimate of the effect on mean of campaign C compared to campaign A is b5 = .0.4396

Part-b

8.61621  

  Confidence interval

[8.51380,8.71862 ]

  Prediction interval

[8.28958,8.94285 ]

Part-c:

5 = effect on mean of Campaign (C) compared to Campaign B.

Part-d

5 is significant at alpha = 0.1 and alpha = 0.05 because p-value(one-tail)=0.0179/2 =0.00895 . Thus there is strong evidence that 5 is greater than 0.

  The point estimate of the effect on the mean of campaign B compared to campaign A is

   b4 = .0.2695

  The point estimate of the effect on mean of campaign C compared to campaign A is b5 = .0.4396

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