SCENARIO 11-12 The Marketing Manager of a Company Producing a New Cereal

question 205

Multiple Choice

SCENARIO 11-12
The marketing manager of a company producing a new cereal aimed for children wants to examine the effect of the color and shape of the box's logo on the approval rating of the cereal. He combined 4 colors and 3 shapes to produce a total of 12 designs. Each logo was presented to 2 different groups (a total of 24 groups) and the approval rating for each was recorded and is shown below. The manager analyzed these data using the α = 0.05 level of significance for all inferences.


-Referring to Scenario 11-11,what degrees of freedom should be used to determine the critical value of the F ratio against which to test for differences in the mean charges for doctors among the four primary specialty areas?

• A)numerator df = 1,denominator df = 159
• B)numerator df = 3,denominator df = 159
• C)numerator df = 1,denominator df = 152
• D)numerator df = 3,denominator df = 152

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Definitions:

Variable Cost Ratio

The proportion of variable costs to sales revenue, indicating how much variable cost changes with a change in the company's production volume.

Fixed Costs

Fixed costs, including rent, wages, and insurance expenses, stay the same no matter the production or sales volume.

Debt

An amount of money borrowed by one party from another, to be paid back with interest.

Shareholder Value

The worth delivered to shareholders due to management's ability to grow sales, earnings, and dividends over time.