A two-factor analysis of variance is conducted to test the effect that price and advertising have on sales of a particular brand of bottled water.Each week a combination of particular levels of price and advertising are used and the sales amount is recorded.The computer results are shown below. ANOVA
Based on the results above and a 0.05 level of significance,which of the following is correct?
A)There is no interaction between price and advertising,so results for individual factors may be misleading.
B)There is interaction between price and advertising,so the above results for individual factors may be misleading.
C)There is no interaction between price and advertising,and both factors significantly affect sales.
D)There is interaction between price and advertising,so the above results conclusively show that both factors affect price.

Question

A two-factor analysis of variance is conducted to test the effect that price and advertising have on sales of a particular brand of bottled water.Each week a combination of particular levels of price and advertising are used and the sales amount is recorded.The computer results are shown below. ANOVA
 Based on the results above and a 0.05 level of significance,which of the following is correct?
A)There is no interaction between price and advertising,so results for individual factors may be misleading. 
B)There is interaction between price and advertising,so the above results for individual factors may be misleading. 
C)There is no interaction between price and advertising,and both factors significantly affect sales. 
D)There is interaction between price and advertising,so the above results conclusively show that both factors affect price.

Quizplus · Accepted Answer

The ANOVA table shows a significant interaction between price and advertising (p=0.032), indicating that the effect of price on sales depends on the level of advertising and vice versa. Therefore, the results for individual factors may be misleading and should not be interpreted without considering the interaction effect.

A Two-Factor Analysis of Variance Is Conducted to Test the Effect