Question

A manufacturer of novelty items is undecided about the price to charge for a new product. The marketing manager knows that it should sell for about $10 but is unsure of whether sales will vary significantly if it is priced at either $9 or $11. To conduct a pricing experiment, she distributes the new product to a sample of 60 stores belonging to a certain chain of variety stores. These 60 stores are all located in similar neighborhoods. The manager randomly selects 20 stores in which to sell the item at $9, 20 stores to sell it at $10, and the remaining 20 stores to sell it at $11. Sales at the end of the trial period were recorded and analyzed as shown below. ANOVA Source SS df MS F p-value Treatment 5010.63 2 2505.3 3.41 0.04 Error 41897.55 57 735.0 Total 46908.18 59 Post hoc p-value for pairwise tests Price-$11 Price-$10 Price-$9 133.3 151.5 153.6 Price-$11 133.3 Price-$10 0.0376 151.5 Price-$9 0.0210 0.8074 153.6 1. Write the null and alternative hypotheses. [ 2 points] 1. At a 5% significance level, test whether can we conclude that there are differences in sales

          A manufacturer of novelty items is undecided about the price to charge for a new product. The marketing manager knows that it should sell for about $10 but is unsure of whether sales will vary significantly if it is priced at either $9 or $11. To conduct a pricing experiment, she distributes the new product to a sample of 60 stores belonging to a certain chain of variety stores. These 60 stores are all located in similar neighborhoods. The manager randomly selects 20 stores in which to sell the item at $9, 20 stores to sell it at $10, and the remaining 20 stores to sell it at $11. Sales at the end of the trial period were recorded and analyzed as shown below.
ANOVA
Source SS df MS F p-value
Treatment 5010.63 2 2505.3 3.41 0.04
Error 41897.55 57 735.0
Total 46908.18 59
Post hoc p-value for pairwise tests
Price-$11 Price-$10 Price-$9
133.3 151.5 153.6
Price-$11 133.3
Price-$10 0.0376 151.5
Price-$9 0.0210 0.8074 153.6
1. Write the null and alternative hypotheses. [ 2 points]
1. At a 5% significance level, test whether can we conclude that there are differences in sales

A manufacturer of novelty items is undecided about the price to charge for a new product. The marketing manager knows that it should sell for about 10 but is unsure of whether sales will vary significantly if it is priced at either9 or 11. To conduct a pricing experiment, she distributes the new product to a sample of 60 stores belonging to a certain chain of variety stores. These 60 stores are all located in similar neighborhoods. The manager randomly selects 20 stores in which to sell the item at9, 20 stores to sell it at 10, and the remaining 20 stores to sell it at11. Sales at the end of the trial period were recorded and analyzed as shown below.
ANOVA
Source SS df MS F p-value
Treatment 5010.63 2 2505.3 3.41 0.04
Error 41897.55 57 735.0
Total 46908.18 59
Post hoc p-value for pairwise tests
Price-11 Price-10 Price-9
133.3 151.5 153.6
Price-11 133.3
Price-10 0.0376 151.5
Price-9 0.0210 0.8074 153.6
1. Write the null and alternative hypotheses. [ 2 points]
1. At a 5% significance level, test whether can we conclude that there are differences in sales

Added by Cynthia J.

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