A Study Was Conducted to Test the Effectiveness of Supermarket

question 73

Multiple Choice

A study was conducted to test the effectiveness of supermarket sales strategies. At one supermarket, the price level (regular, reduced price, and at cost to supermarket) and display level (normal display space, normal display space plus end-of-aisle display, and twice the normal display space) were tested to determine if they had any effect on the weekly sales of a particular supermarket product. Each of the combinations of price level and display level were put in place for a randomly selected week and the weekly sales of the product was recorded. Each combination was used three times over the course of the experiment. The results of the study are shown here:
$$\begin{array}{l}\text { The ANOVA table is shown below: }\\\begin{array} { l | c | c | c | c | c } \text { Source } & \text { DF } & \text { SS } & \text { MS } & \mathrm { F } & \mathrm { P } \\\hline \text { Display } & 2 & 1691393 & 845696 & 1709.37 & 0.0000 \\\text { Price } & 2 & 3089054 & 154427 & 3121.89 & 0.0000 \\\text { Display*Price } & 4 & 510705 & 127676 & 258.07 & 0.0000 \\\text { Error } & 18 & 8905 & 495 & & \\\text { Total } & 26 & 5300057 & & &\end{array}\end{array}$$ Based on the results found in the ANOVA table, should the Main Effects tests for either Display or price be conducted?

• A) No. The interaction of Display and Price indicates that the Main Effects should not be tested.
• B) It depends on whether the main effects tests will be significant or not.
• C) Yes. The interaction of Display and Price indicates that the Main Effects should be tested.
• D) Yes. The main effects tests are both significant and should be tested.

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Definitions:

Nickels

Coins in the United States and Canada valued at five cents, made of a cupronickel alloy.

Dimes

A coin representing ten cents in the United States currency.

Marginal Rate

The marginal rate usually refers to the incremental increase or decrease in the assessment of a variable or cost in response to a change in some activity.

Goods A

Indicating a generic category of tangible products or commodities.