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

question 90

Multiple Choice

A two-factor analysis of variance is conducted to test the effect that 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 amount is recorded. The computer results are shown below. Based on the results above and a 0.05 level of significance, which of the following is correct?

• A) There is no interaction between price and advertising, so results for individual factors may be misleading.
• B) There is interaction between price and advertising, so the above results for individual factors may be misleading.
• C) There is no interaction between price and advertising, and both factors significantly affect sales.
• D) There is interaction between price and advertising, so the above results conclusively show that both factors affect price.

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Definitions:

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The outward look or traits of an individual, including features, body shape, clothing, and other aspects visible to others.

Social Status

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A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, particularly his eight stages of psychosocial development.

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