Suppose that you are a free-lance consultant/statistician. A marketing company h
ID: 3363397 • Letter: S
Question
Suppose that you are a free-lance consultant/statistician. A marketing company has hired you to investigate the effect of the color of paper (blue, green, orange) on response rates for coupons distributed by the “windshield method” in supermarket parking lots. Coupons of each color were distributed in five different parking lots and the response rates (in percent) were recorded.
(a) You are to decide on an appropriate method to answer the question of whether the color of the paper has an effect on the reponse rate. You are to present your findings to the Chief Marketing Officer, who knows very little about statistics. You decide the best way to present the results.
(b) Suppose that after seeing the results, the executive says “See? I was right all along. We might as well print the coupons on plain white paper. It’s cheaper.” How would you respond?
Parking lot Color 1 2 345 blue 31 39 31 25 34 green 29 35 24 31 29 orange 28 38 27 29 28Explanation / Answer
a) Ans:
One-way ANOVA: rates versus Colour
Source DF SS MS F P
Colour 2 16.5 8.3 0.40 0.680
Error 12 249.2 20.8
Total 14 265.7
S = 4.557 R-Sq = 6.22% R-Sq(adj) = 0.00%
Comment: The estimate p-value of color is 0.680. Hence, we can conclude that the color of the paper does not have an effect on the response rate at 0.05 level of significance. That is all three color have same response rate.
b) Ans: The executive knows the rate of print the coupons on plain white paper also the rate of print by any of these three colors is costlier. Hence, he can give this comment.
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