You are the President of Da Bomb brand shampoos, whose motto is: "Whatever...for your hair." You have just returned from a board meeting where you have received some disturbing news; your holding company, Phat Enterprises, Inc., is likely to miss next year's sales and profit numbers that it has been promising to the financial community. Since Phat Enterprises does not want to be caught up in an Enron/WorldCom type of furor, the holding company is putting a great deal of pressure on all its subsidiaries to deliver either more profit or more sales (or, preferably, both).

You are unhappy to hear this because you have just, in the last year, succeeded in establishing your brands in the marketplace with their "Whatever" (in other words, anything you need for your hair) positioning at a price of $5.39. Some members of your board (made up of Phat Enterprises officers) think you should lower your price "to stimulate sales," while others think you should raise prices "to provide higher profits." You have managed to hold them off by getting them to agree to an ANOVA plot to test these different levels of pricing.

One group of stores has run a "bargain basement" $4.39 price, and those stores sold 34, 31, 32, and 27 bottles of shampoo per week on average. Four stores received a $4.99 price and sold 30, 32, 28, and 30 bottles, respectively. Five stores kept the established $5.39 price and sold 29, 30, 27, 31, and 28 bottles. Four stores ran a higher $5.99 price and sold 30, 29, 28, and 29 bottles, respectively. Finally, three stores received a "top drawer" $6.39 price and sold 23, 27, and 25 bottles.

Using an alpha of .01 and the 5-step hypothesis-testing method, analyze the data (make sure you include the ANOVA table) and report your findings. Make sure you include a specific pricing recommendation in Step 5, part c).