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

question 58

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.

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Definitions:

Market Price

The market rate at which you can currently buy or sell a service or asset in a specified market.

Equilibrium Price

The market-clearing price where the intentions of buyers and sellers match, leading to an optimal distribution of goods and services.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.

Hotel Rooms

Units of accommodation provided by hotels for guests, typically including a bed and bathroom and varying in size and amenities.