2) A major greeting card company has negotiated a deal with a credit card compan

Question

2) A major greeting card company has negotiated a deal with a credit card company to include a coupon for a greeting card set in every cardholder's monthly statement. The greeting card company has come up with 4 coupon designs that it wishes to test to determine which coupon is most effective in generating greeting card set sales. After sending out the 4 different coupons to randomly selected credit card customers in a trial run, a random sample of 8 customers who redeemed their coupons is selected from each coupon design (8 customers for each design), and the dollar value of the card set ordered for each customer is recorded. The data are provided in the following table Coupon Design Customer #2 123 #1 #4 75 119 145 143 98 243 123 76 65 109 127 107 123 209 156 160 41 69 mean 78 23 std. dev a) Define the factor, factor levels, treatment, and response variate for this study b) Describe how replication, randomization and blocking (if relevant) are employed in this study c) Give the response model that describes the experimental design of this study d) Use the means and standard deviations of the sales for the different coupon designs to generate manually an ANOVA table for this data. Use this table to test the hypothesis that there is no difference in mean sales between the 4 coupon designs. Be sure to include the appropriate hypotheses, value of the test statistic, p-value (using the pf function), and conclusion in the context of the study e) Use R to verify that the values in the ANOVA table and subsequent F-test that you calculated by hand in d) are correct (Note: there may be some discrepancy due to round-off error)

Explanation / Answer

There are 2 factors:

1. Customer

2. Coupon Design

Levels of Factor

Customer has 8 levels

Coupon Design has 4 levels

There are 8x4 i.e. 32 treatments

Response Variate is the Dolar Value of the card set ordered

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