Kraft foods wants to see whether a coupon will affect sales for macaroni and cheese. Kraft picks

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Kraft foods wants to see whether a coupon will affect sales for macaroni and cheese. Kraft picks a single grocery store in Philadelphia in which to test two coupon types: ?buy one, get one free? and ?$.50 off.? They also want to test whether it matters on which day of the week the coupon gets delivered: Wednesday or Friday. They choose randomly assigned customers to one of the four conditions. They measure success by total sales of Kraft Macaroni and Cheese at the store.

a) What type of experimental design is this?

b) Do you have any concerns about the design?

c) Does this experiment satisfy the necessary conditions for a properly designed experiment?

d) The analyst computes the means for each cell, which appear in the table below. Based on the data, the analyst claims that it does not make a difference whether the coupon is delivered on Wednesday or Friday. Is the analyst correct? Why or why not? Does it help to create the interaction plot?

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Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Business Statistics

ISBN: 9780134705217

4th Edition

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

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