A company markets its products by direct mail. An experiment was conducted to study the effects of three factors on the customer response rate for a particular product. The three factors are A = type of mail used (3rd class, 1st class), B = type of descriptive brochure (color, blackand-white), and C = offer price ($19.95, $24.95). The mailings are made to two groups of 8,000 randomly selected customers, with 1,000 customers in each group receiving each treatment combination. Each group of customers is considered as a replicate. The response variable is the number of orders placed. The experimental data is shown below

a. Estimate all the factor effects. Which effects appear to be large?

b. Do any of the factors affect the customer response? Use = 0.05.

\begin{tabular}{cccccc} \hline & \multicolumn{3}{c}{ Coded Factors } & \multicolumn{2}{c}{ Number of Orders } \\ Run & A & B & C & Replicate 1 & Replicate 2 \\ \hline 1 & & & & 50 & 54 \\ 2 & + & & & 44 & 42 \\ 3 & & + & & 46 & 48 \\ 4 & + & + & & 42 & 43 \\ 5 & & & + & 49 & 46 \\ 6 & + & & + & 48 & 45 \\ 7 & & + & + & 47 & 48 \\ 8 & + & + & + & 56 & 54 \\ \hline \end{tabular} \begin{tabular}{lll} \hline & \multicolumn{2}{c}{ Factor Levels } \\ & Low (1) & High (+1) \\ \hlineA (class) & 3rd & 1st \\ B (type) & BW & Color \\ C($) & $19.95 & $24.95 \\ \hline \end{tabular} \begin{tabular}{cccccc} \hline & \multicolumn{3}{c}{ Coded Factors } & \multicolumn{2}{c}{ Number of Orders } \\ Run & A & B & C & Replicate 1 & Replicate 2 \\ \hline 1 & & & & 50 & 54 \\ 2 & + & & & 44 & 42 \\ 3 & & + & & 46 & 48 \\ 4 & + & + & & 42 & 43 \\ 5 & & & + & 49 & 46 \\ 6 & + & & + & 48 & 45 \\ 7 & & + & + & 47 & 48 \\ 8 & + & + & + & 56 & 54 \\ \hline \end{tabular} \begin{tabular}{lll} \hline & \multicolumn{2}{c}{ Factor Levels } \\ & Low (1) & High (+1) \\ \hlineA (class) & 3rd & 1st \\ B (type) & BW & Color \\ C($) & $19.95 & $24.95 \\ \hline \end{tabular}