A Study Was Conducted to Test the Effectiveness of Supermarket

question 49

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

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

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Definitions:

Inputs

The resources, such as labor, materials, and capital, that are used in the production process to produce goods or services.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified time period.

Total Cost Curve

A graphical representation showing the total cost of producing different levels of output in the short run or long run.

Quantity

The amount or number of units of a product, good, or service available or demanded in a market.