The retailing manager wants to determine whether product location has any effect on the sale of products or its only Brand Spinney’s which has an impact. Three different locations are considered:...


The retailing manager wants to determine whether product location has any effect on the sale of products or its only Brand Spinney’s which has an impact. Three different locations are considered: Location A, Location B and Location C. A random sample of 18 stores is selected, with 6 stores randomly assigned to each aisle location. The size of the display area and price of the product are constant for all the stores. At the end of the one-month trial period, the sales volumes (in thousands of dollars) of the product in each store were as shown:






















































































































































































































































Summary stats for samples



Location A



Location


B



Location


C



Sample sizes



6



6



6



Sample means



7.467



3.467



5.133



Sample standard deviations



1.648



0.653



1.418



Sample variances



2.715



0.427



2.011



Weights for pooled variance



0.333



0.333



0.333



Number of samples



3



Total sample size



18



Grand mean



5.356



Pooled variance



1.717



Pooled standard deviation



1.310





One Way ANOVA table



Source



SS



df



MS



F



p-value



Between variation



48.444



2



24.222



14.105



0.0004



Within variation



25.760



15



1.717



Total variation



74.204



17





Confidence intervals for mean differences



Confidence level



95.0%





Tukey method



Difference



Mean diff



Lower



Upper



Location A - Location B



4.000



2.037



5.963



Location A - Location C



2.333



0.370



4.297



Location B - Location C



-1.667



-3.630



0.297





  1. At the 0.05 level of significance, is there evidence of a significant difference in average sales among the various locations? Why (statistically)




  2. To test at the 0.05 level of significance whether the average sales volumes in thousands of dollars are different across the three store locations, you need to conduct a test, also clearly mention Null and Alternative hypothesis




  3. Your decision? If appropriate, which locations appear to differ significantly in average sales? (Use = 0.05), what should the retailing manager conclude? Fully describe the retailing manager’s options with respect to various locations?

Jun 02, 2022
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