A Soft Drink Company Is Introducing a New Drink and Wishes

question 14

Essay

A soft drink company is introducing a new drink and wishes to evaluate which of three different formulas will be most popular.Five people taste each of the three formulas in a random order and rate each formula's taste on a scale from 1 to 10.The results are given below. $$\begin{array} { | c | c | c | c | } & \text { Farmula 1 } & \text { Farmula 2 } & \text { Farmula 3 } \\\hline \text { Person 1 } & 9 & 6 & 4 \\\hline \text { Person 2 } & 7 & 8 & 2 \\\hline \text { Persan 3 } & 5 & 6 & 3 \\\hline \text { Persan 4 } & 7 & 5 & 2 \\\hline \text { Persan 5 } & 8 & 7 & 2 \\\hline\end{array}$$ Conduct a Friedman test at the 0.05 level of significance to determine if there are differences in consumer ratings between the three formulas.

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Manufacturing Overhead

All factory-related costs that are incurred during the manufacturing process, excluding direct materials and direct labor.