A fast-food chain wants to determine wants to determine whether there are any di
ID: 3228359 • Letter: A
Question
A fast-food chain wants to determine wants to determine whether there are any difference between three media (i.e., magazine, TV, radio) in terms of consumer recall of an ad. The results of an advertising study are as follows:
Recall Ability
Medium
Magazine
TV
Radio
Total
Remember Ad
25
10
7
42
Do Not Remember Ad
73
93
108
274
Total
98
103
115
316
Use = 0.05 to test whether the ability to recall an ad is related to or not related to the medium.
Answer the following:
a. State your H0 and H1.
b. What statistical test are you using?
c. What is the p-value of this test?
d. What is your decision, i.e., do you Reject or Do Not Reject H0?
e. State your conclusion in non-technical terms.
Recall Ability
Medium
Magazine
TV
Radio
Total
Remember Ad
25
10
7
42
Do Not Remember Ad
73
93
108
274
Total
98
103
115
316
Explanation / Answer
From the data we get the following ANOVA table
a) Null and Alternative hypothesis are Ho : There is no significant difference in the recall ability of people for an ad between different media Ha : There is a significant difference in the recall ability of people for an ad between different media b) We will be using ANOVA-two factor test without replicationFrom the data we get the following ANOVA table
ANOVA c) Source of Variation Sum of Squares Degrees of freedom Mean Sum of Squares F-statistic P-value Recall Ability 8970.667 1 8970.6667 24.7012 0.0382 Media 76.33333 2 38.1667 0.1051 0.9049 Error 726.3333 2 363.1667 Total 9773.333 5 F-statistic for media is obtained as 0.1051 Media degrees of freedom = number of media - 1 = 3 - 1 = 2 Error degrees of freedom = (Number of recall ability - 1) x (Number of media - 1) = (2-1) x (3-1) = 2 From F tables we find the p-value of F=0.1051 for numerator degrees of freedom = 2 (media df) and denominator degrees of freedom = 2 (Error degrees of freedom) p-value obtained is 0.9049 d) = 0.05 Since p-value (0.9049) > (0.05), we do not reject the null hypothesis e) Conclusion : There is no significant difference in the recall ability of people for an ad between different mediaRelated Questions
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