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Statistics 106: Winter 2020 – Homework 4

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STATISTICS 106

Winter 2020

Homework 4

A study aims to test the effect of price discounts and package size on the sales of saltine crackers. Three levels of discount (10%, 20% and 30%) and three package sizes (Small/Medium/Large) are tested. Five stores are randomly assigned to each combination of discount and package

size. The sample means of
sales in thousand dollars observed over an entire month for each discount-size
combination are reported in Table 1.

        Package size (Factor B)
        Small   Medium   Large          
              Y i··
  10% 8   11   18          
Discount 20% 11   13   20          
(Factor A) 30% 17   18   24          
                       
    Y ·j·             Y··· =

Table 1: Sample means of
saltine cracker sales in thousand dollars across the levels of discount and
package size.

  1. Identify factors, their
    type and nature, treatments, experimental units and the response variable. (4p)
  • Identify the individual
    sample size n, the number of levels of discount and package size, a and b, the
    number of treatments r, the overall sample size nT . (4p)
  • Which kind of experimental design is this? Why?
    (4p)
  • Produce the interaction
    plot of Factor A (discount) and Factor B (package size), and viceversa,
    commenting about the main effects of both factors and their interactions. (8p)
  • Complete Table 1. Then,
    calculate the sum of treatment squares for factor A (SSA), factor B (SSB) and
    their interactions (SSAB). Finally, complete Table 2. (8p)
  • Test for the overall
    presence of main effects for factors A and B and of their interactions. (6p)
  • Can the simulatenous effect µ11 be assumed equal to 12?
    Perform the individual-wise test at a significance level of 5% and comment.
    (4p)
  • Derive a confidence
    interval at 95% for µ,
    both individual-wise and family-wise over the family composed by all the
    row-wise means µ1i,
    i = 1, . . . , a. (8p)

1

Source
of
Sum of Degrees
of
M S
Variation Squares
(SS)
Freedom
(df)
= SS  
df
       
Factor SSA =   MSA =
A          
Factor SSB =   MSB =
B          
Interaction SSAB =   MSAB =
AB          
Between SSTR =   MSTR =
treatments          
Within SSE =
1000
  MSE =
treatments          
           
Total SSTO =        
           
           

Table 2: Saltine crackers sales by discount and package size: two-factor
analysis of variance

  • Test the null hypothesis µ23 − µ22 = 0 at a significance
    level of 5%, both individual-wise and family-wise (over all pairwise differences
    involving the simultaenous effects). Comment. (8p)
  1. Derive the confidence
    interval at 95% for the contrast −14 µ31 + 12 µ3214 µ33, both individual-wise and family-wise (over the
    infinite-dimensional family of contrasts in-volving all simultaneous effects).
    Comment. (8p)

Suppose now that Table 1 is
referred to only one store for each discount-size combina-tion instead of five.

  1. Which is the effect of this
    change on the underlying model we allow for the data? Explain. (8p)
  1. Produce a new ANOVA table with the respective
    degrees of freedom. (6p)
  1. Test for the overall
    presence of main effects for factors A and B. Are these tests reliable? (6p)
  1. Estimate an individual-wise confidence interval
    at 95% for µ. (4p)
  1. Estimate the treatment mean
    for stores with a 20% discount and a medium package size. Comment. (6p)
  1. Perform Tukey’s additivity
    test with a significance level of 5% and 1%. Comment. (8p)

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