A Two-Factor Analysis of Variance Is Conducted to Test the Effect

question 38

Multiple Choice

A two-factor analysis of variance is conducted to test the effect the price and advertising have on sales of a particular brand of bottled water. Each week a combination of particular levels of price and advertising are used and the sales level is recorded. The computer results are shown below. Based on the results above, which of the following is correct?

• A) 1 level of advertising and 2 levels of price were used.
• B) 3 levels of adverting and 2 levels of price were used.
• C) 2 levels of advertising and 3 levels of price were used.
• D) There were a total of 6 different treatments.

---

Definitions:

Liquidation

Liquidation is the process of bringing a business to an end and distributing its assets to claimants, often occurring when a company is insolvent.

Employee Wages

The regular compensation paid to employees for their labor or services, usually based on hours worked or output.

Indirect Bankruptcy Costs

The difficulties of running a business that is experiencing financial distress.

Bankruptcy Filing

A legal process through which individuals or businesses unable to meet their debts can seek relief from some or all of their obligations.