2. A consumer products company relies on direct mail marketing pieces as a major
ID: 3352697 • Letter: 2
Question
2. A consumer products company relies on direct mail marketing pieces as a major component of its advertising companies. The company has three different designs for a new brochure and want to evaluate their effectiveness, as there are substantial differences in costs between the three designs. The company decides to test the three designs by mailing 5,000 samples of each to potential customers in four different regions of the country. Since there are known regional differences in the customer base, regions are considered as blocks. The number of responses to each mailing is shown below. Region Design NE NW SE SW 250 350 219 375 400 525 390 580 3 275 340200 310 2 (a) Analyze the data from this experiment. (b) Use the Fisher LSD method to make comparisons among the three designs to determine specifically which designs differ in mean response rate.Explanation / Answer
Answer:
MINITAB used.
General Linear Model: Response versus Region, Design
Method
Factor coding
(-1, 0, +1)
Factor Information
Factor
Type
Levels
Values
Region
Fixed
4
NE, NW, SE, SW
Design
Fixed
3
1, 2, 3
Analysis of Variance
Source
DF
Adj SS
Adj MS
F-Value
P-Value
Region
3
49036
16345.2
18.06
0.002
Design
2
90755
45377.6
50.15
0.000
Error
6
5429
904.8
Total
11
145220
Model Summary
S
R-sq
R-sq(adj)
R-sq(pred)
30.0800
96.26%
93.15%
85.05%
To test the effect of region, calculated F=18.06, P=0.002 which is < 0.05 level of significance.
The effect of region is significant.
To test the effect of design, calculated F=50.15, P=0.000 which is < 0.05 level of significance.
The effect of Design is significant.
Fisher Pairwise Comparisons: Design
Grouping Information Using Fisher LSD Method and 95% Confidence
Design
N
Mean
Grouping
2
4
473.75
A
1
4
298.50
B
3
4
281.25
B
Means that do not share a letter are significantly different.
Fisher LSD test shows that Design 2 is significantly differ than Design 1 and Design 3.
Design 1 and Design 3 are not significantly differ.
Factor coding
(-1, 0, +1)
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