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TABLE 11-12 The Marketing Manager of a Company Producing a New Cereal

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TABLE 11-12
The marketing manager of a company producing a new cereal aimed for children wants to examine the effect of the color and shape of the box's logo on the approval rating of the cereal. He combined 4 colors and 3 shapes to produce a total of 12 designs. Each logo was presented to 2 different groups (a total of 24 groups) and the approval rating for each was recorded and is shown below. The manager analyzed these data using the α = 0.05 level of significance for all inferences.
TABLE 11-12 The marketing manager of a company producing a new cereal aimed for children wants to examine the effect of the color and shape of the box's logo on the approval rating of the cereal. He combined 4 colors and 3 shapes to produce a total of 12 designs. Each logo was presented to 2 different groups (a total of 24 groups) and the approval rating for each was recorded and is shown below. The manager analyzed these data using the α = 0.05 level of significance for all inferences.     Analysis of Variance Source df SS MS F p Colors 3 2711.17 903.72 72.30 0.000 Shapes 2 579.00 289.50 23.16 0.000 Interaction 6 150.33 25.06 2.00 0.144 Error 12 150.00 12.50 Total 23 3590.50 -Referring to Table 11-12, based on the results of the hypothesis test, it appears that there is a significant interaction.
Analysis of Variance
Source df SS MS F p
Colors 3 2711.17 903.72 72.30 0.000
Shapes 2 579.00 289.50 23.16 0.000
Interaction 6 150.33 25.06 2.00 0.144
Error 12 150.00 12.50
Total 23 3590.50
-Referring to Table 11-12, based on the results of the hypothesis test, it appears that there is a significant interaction.


Definitions:

Reinvesting Dividends

The process of using dividend payments to purchase more shares of the same stock.

Declaration Date

The date on which a company's board of directors announces its next dividend payment.

Board of Directors

A group of individuals elected by shareholders to oversee the management and major decisions of a corporation.

Dividend Payment

The distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.

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