A study recently conducted by a marketing firm analyzed three different advertising designs (factor
A) and four different income levels (factor
B) of potential customers. At each combination of factor A and
factor B, 5 customers are observed and the number of products produced is recorded. Interaction between
the two factors would exist if low income customers have higher mean buying when design 1 is used, but
higher income customers have higher mean buying when designs 2 and 3 are used.

Question

Quizplus · Accepted Answer

Interaction between factors A and B exists because the effect of advertising design (factor A) on the number of products bought changes depending on the income level (factor B) of the customers.

A Study Recently Conducted by a Marketing Firm Analyzed Three