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

question 18

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. ANOVA
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:

Cash Flow

The total amount of money being transferred in and out of a business, especially affecting liquidity.

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Unearned Sales Revenue

Money received by a company for goods or services yet to be delivered or performed.

Depreciable Asset

An asset subject to depreciation, representing the decline in value over time due to use, wear and tear, or obsolescence.