A Study Was Conducted to Test the Effectiveness of Supermarket $\text { The ANOVA table is shown below: }$

question 76

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: The ANOVA table is shown below:

$\text { The ANOVA table is shown below: }$

$\begin{array}{l|c|c|c|c}\text { Source } & \text { DF } & \text { SS } & \text { MS } & \text { F } \\\hline \text { Display } & 2 & 1691393 & 845696 & \\\text { Price } & 2 & 3089054 & 1544527 & \\\text { Display'Price } & 4 & 510705 & 127676 & \\\text { Error } & 18 & 8905 & 495 & \\\text { Total } & 26 & 5300057 & &\end{array}$
Find the test statistic for determining whether the interaction between Price and Display is significant.

• A) 1709.37
• B) 3121.89
• C) 257.93
• D) 495

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Definitions:

Interest

The cost of borrowing money or the return on investment for savings and investments, typically expressed as an annual percentage rate.

Liquidity Ratios

Financial metrics used to assess a company's ability to meet its short-term debt obligations, by comparing current assets to current liabilities.

Debt-Paying Ability

A financial metric used to gauge a firm's capacity to settle its obligations, often assessed through ratios such as the debt to equity or debt service coverage ratios.

Operating Cycle

The duration it takes for a company to buy inventory, sell that inventory, and collect cash from the sale, representing the time it takes to convert resources into cash flows.