Question
A well-known company, Duoflex, Co, produces and sells a variety of consumer products. One such product is not selling well. Duoflex is investigating strategies for
A well-known company, Duoflex, Co, produces and sells a variety of consumer products. One such product is not selling well. Duoflex is investigating strategies for improving sales of that product. One fairly simple option is to alter the packaging. The company's advertising agency developed a new design for test marketing. The new package design (Design 1) features several bright colors that might attract consumer attention, while the current design (Design 2) is a solid, pastel, blue with just the company's logo on it. In a test to determine if the new design is effective in increasing sales, two supermarkets participated in the pilot study. In one supermarket the product was packaged in a box using the new design, and in the second supermarket the current design was used.The product scanner at each supermarket tracked every buyer of the product over a 1-week period. The supermarkets recorded the last four digits of the scanner code for each of the five brands of the product the supermarket sold. (To clarify, whatever this product is, each supermarket stocks and sells 5 versions/brands of this product, one of which is Duoflex's.) The code for Duoblex is 9077. Any other code that is recorded indicates that the product is sold by a different company. The data can be accessed in the file "Group Case #2 Data."
The bright coloring for Design 1 will make it more expensive than the current packaging. In order to off-set the additional cost, sales would need to be more than 2% higher with Design 1 than with Design 2. Your team will conduct an appropriate analysis of the data and make a recommendation about package selection to Duoflex.
Requirements Since confidence intervals can simultaneously answer hypothesis questions and inform about value, use a confidence interval to determine whether you recommend the newly designed packaging. Control the Type I error rate for the hypothesis test at 0.05. [Hint: Take care here. This may require some consideration. Use the PLAN-DO-REPORT format to summarize the problem, your work, and your findings.
PLAN Briefly summarize the objective of the analysis, important variable(s), data collection and characteristics. This should be written as though the reader has no prior knowledge of the problem specifics, but it cannot simply be a "Copy and Paste" of the case problem. State the hypotheses Identify analysis type State andcheck required data conditions. Include all graphs and numerical summary used in this process. | 4 points 3 points 2 points 3 points |
DO Complete all relevant analysis utilizing the pre-programmed statistical software (StatCrunch or Excel Data Analysis Add-In). Problem #2 data are saved in the Excel file titled "Case #2 Data" posted on Carmen > Modules > Practical Exercises > Group Case #2. If you feel any manual calculations are necessary, they must be processed with the Equation Builder/Editor. Failure to do so will result in a deduction from the FORMAT points. | 4 points |
REPORT Use the Memo format as shown in the class notes. Your report must begin with a brief summary of the purpose of the analysis and report. Write a brief but comprehensive summary of your findings and conclusion. Include specific numerical information to connect the statistical results with your conclusions. Include any qualifications, if any, that should be applied to or reservations you have about the statistical analysis done. | 1 point 1 point 4 points 1 points |
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