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

question 79

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. ANOVA
How many replications were used in this study?

• A)2
• B)3
• C)4

---

Definitions:

Fixed Costs

Fixed expenses unaffected by variations in production or sales levels, like rent, wages, and insurance.

Target Income

The profit amount that a company aims to achieve within a specific period.

Required Sales

The volume of sales necessary to achieve a specific financial objective, such as covering costs or reaching a target profit.

Contribution Margin

It is the amount by which sales revenue exceeds variable costs. It contributes towards covering fixed costs and generating profit.