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Samsung is designing a new smartphone. They have narrowed their choices to two s

ID: 3350767 • Letter: S

Question

Samsung is designing a new smartphone. They have narrowed their choices to two sizes (5 and 7 inches) and two colors (red and blue) and want to decide between the four options. At this stage of the development, Samsung is using the response of a sample of 20 people on how much they each liked the one design shown to them to decide. Use the data below to run a factorial Anova. For the size, the color, and their interaction: Provide the hypothesis tested, the p-value, the decision rule, whether you accept or reject the chosen Ho at a confidence level of 95%. Provide also a verbal interpretation of the overall outcome. Finally, as a manager with Samsung, which phone design should you continue to develop and why? Additional Computer output: provide the anova table and the profile plot. Respondent Size Color Like 10 4 10 10 4 15 4 4 20

Explanation / Answer

ANOVA – Back-up Theory

Suppose we have data of a 2-way classification ANOVA, with r rows, c columns and n observations per cell.

Let xijk represent the kth observation in the ith row-jth column, k = 1,2,…,n; i = 1,2,……,r ; j = 1,2,…..,c.

Then the ANOVA model is: xijk = µ + i + j + ij + ijk, where µ = common effect, i = effect of ith row, j = effect of jth column, ij = row-column interaction and ijk is the error component which is assumed to be Normally Distributed with mean 0 and variance 2.

Now, to work out the solution,

Terminology:

Cell total = xij. = sum over k of xijk

Row total = xi..= sum over j of xij.

Column total = x.j. = sum over i of xij.

Grand total = G = sum over i of xi.. = sum over j of x.j.

Correction Factor = C = G2/N, where N = total number of observations = r x c x n =

Total Sum of Squares: SST = (sum over i,j and k of xijk2) – C

Row Sum of Squares: SSR = {(sum over i of xi..2)/(cxn)} – C

Column Sum of Squares: SSC = {(sum over j of x.j.2)/(rxn)} – C

Between Sum of Squares: SSB = {(sum over i and jof xij.2)/n} – C

Interaction Sum of Squares: SSI = SSB – SSR – SSC

Error Sum of Squares: SSE = SST – SSB

Mean Sum of Squares = Sum of squares/Degrees of Freedom

Degrees of Freedom:

Total: N (i.e., rcn) – 1;

Between: rc – 1;

Within(Error): DF for Total – DF for Between;

Rows: (r - 1);

Columns: (c - 1);

Interaction: DF for Between – DF for Rows – DF for Columns;

Fobs:

for Rows: MSSR/MSSE;

for Columns: MSSC/MSSE;

for Interaction: MSSI/MSSE

Fcrit: upper % point of F-Distribution with degrees of freedom n1 and n2, where n1 is the DF for the numerator MSS and n2 is the DF for the denominator MSS of Fobs

Significance: Fobs is significant if Fobs > Fcrit

Calculations:

Let xijk = like score for kth respondent of ith size and jth colour – i = 1 for size 5, 2 for size 7; j = 1 for red and 2 for blue.

xijk are tabulated below:

Size (i)

Colour (j)

Red (1)

Blue (2)

5 (1)

7

6

7

3

10

9

10

10

9

9

7(2)

4

6

7

4

7

6

1

4

9

4

G

132

C

871.2

Sumxijk^2

1002

Sumxij.^2

4658

Sumxi..^2

910.4

Sumx.j.^2

876.2

SST

130.8

SSB

60.4

SSR

39.2

SSC

5

SSI

16.2

SSE

70.4

ANOVA TABLE

Source

DF

SS

MSS

Fobs

Fcrit

Row

1

39.2

39.2

8.909091

4.493998

Column

1

5

5

1.136364

4.493998

Interaction

1

16.2

16.2

3.681818

4.493998

Between

3

60.4

20.13333

Error

16

70.4

4.4

Total

19

130.8

6.884211

Since Fcal is greater than Fcrit for Row only, only Row (size) is significant.

=> there is evidence to suggest that only size has an impact on the respondent rating score. ANSWER

DONE

Size (i)

Colour (j)

Red (1)

Blue (2)

5 (1)

7

6

7

3

10

9

10

10

9

9

7(2)

4

6

7

4

7

6

1

4

9

4

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