Solved

A Beverage Distributor Wanted to Determine the Combination of Advertising

Question 28

Essay

A beverage distributor wanted to determine the combination of advertising agency (two levels) and advertising medium (three levels) that would produce the largest increase in sales per advertising dollar. Each of the advertising agencies prepared ads as required for each of the media-- newspaper, radio, and television. Twelve small towns of roughly the same size were selected for the experiment, and two each were randomly assigned to receive an advertisement prepared and transmitted by each of the six agency-medium
combinations. The dollar increases in sales per advertising dollar, based on a 1-month sales period, are shown in the table.

Advertising Medium  Newspaper  Radio  Television  Agency 1 15.3,12.717.4,20.116.2,12.7 Agency 222.4,18.924.3,28.89.4,12.5\begin{array}{l}\text {\quad\quad\quad\quad\quad\quad\quad\quad\quad Advertising Medium }\\\begin{array} { l | c | c | c } & { \text { Newspaper } } & \text { Radio } & \text { Television } \\\hline \text { Agency 1 } & 15.3,12.7 & 17.4,20.1 & 16.2,12.7 \\\text { Agency } 2 & 22.4,18.9 & 24.3,28.8 & 9.4,12.5\end{array}\end{array} The SPSS analysis is shown below.

* * * A N A L YSIS OF V ARIANCE***
SALES
BY AGENCY
MEDIUM
 Sum of  Mean  Signif  of F  Source of Variation  Squares  DF  Square  F  Main Effects 238.299379.43313.934.004\begin{array} { c l c c c r } & \text { Sum of } & & \text { Mean } & & \begin{array} { r } \text { Signif } \\ \text { of F } \end{array} \\ \text { Source of Variation } & \text { Squares } & \text { DF } & \text { Square } & \text { F } & \\ \text { Main Effects } & 238.299 & 3 & 79.433 & 13.934 & .004 \end{array}  AGENCY 39.967139.9677.011.038 MEDIUM 198.332299.16617.395.003 AGENCY*MEDIUM 77.345238.6726.784.029 Explained 315.644563.12911.074.005 Residual 34.20565.701 Total 349.8491131.804\begin{array} { c r r r r r } \text { AGENCY } & 39.967 & 1 & 39.967 & 7.011 & .038 \\\text { MEDIUM } & 198.332 & 2 & 99.166 & 17.395 & .003 \\\text { AGENCY*MEDIUM } & 77.345 & 2 & 38.672 & 6.784 & .029 \\& & & & & \\\text { Explained } & 315.644 & 5 & 63.129 & 11.074 & .005 \\\text { Residual } & 34.205 & 6 & 5.701 & & \\\text { Total } & 349.849 & 11 & 31.804 & &\end{array} (Note: SPSS uses "Explained" instead of "Treatment" in the factorial analysis. Also, SPSS uses "Residual" instead of "Error.") Would you test the main effects factors, agency and medium, in this example? Explain why or why not.

Correct Answer:

verifed

Verified

The main effect factors, agenc...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents