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. 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.  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 interaction effect between price and advertising is statistically significant, indicating that the effect of one factor on sales depends on the level of the other factor. Therefore, the individual results for price and advertising may be misleading because the effect of each factor depends on the level of the other factor.

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