Giant food stores serves two customer segments: ?Budget Shoppers? and ?Foodies.? Giant sends 1000 of each type

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Giant food stores serves two customer segments: ?Budget Shoppers? and ?Foodies.? Giant sends 1000 of each type of customer one of two circulars:

Deep Discounts or Gourmet Food. The response is the total amount spent at Giant stores over the next week.

a) What type of experimental design is this?

b) Draw the diagram associated with this design.

c) Does this design have any issues that should be worrisome?

d) The Giant analyst plots the means of each treatment condition in the interaction plot below. She concludes that ?Foodies are wealthier, and spend more on food in general. Nonetheless, each segment is affected positively by the advertisement that most appeals to them, and negatively by less appealing ads. This accounts for the ?crossover? pattern: Foodies decrease spending but the Budget segment increases spending when sent the Deep Discount circular. The reverse is true for the Gourmet Food circular.? Critique the analyst?s conclusions.

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Business Statistics

ISBN: 9780134705217

4th Edition

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

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