Reference no: EM131762066

Question: Those who advocate for monetary incentives in a work environment claim that this type of incentive has the greatest appeal because it allows the winners to do what they want with their winnings. Those in favor of tangible incentives argue that money lacks the emotional appeal of, say, a weekend for two at a romantic country inn or elegant hotel or a weeklong trip to Europe. A few years ago a national tire company, in an effort to improve sales of a new line of tires, decided to test which method-offering cash incentives or offering non-cash prizes such as vacations-was more successful in increasing sales. The company had 60 retail sales districts of various sizes across the country and data on the previous sales volume for each district.

(a) Describe a completely randomized design using the 60 retail sales districts that would help answer this question.

(b) Explain how you would use the table of random digits below to do the randomization that your design requires. Then use your method to make the first three assignments. Show your work clearly.

(c) One of the company's officers suggested that it would be better to use a matched pairs design instead of a completely randomized design. Explain how you would change your design to accomplish this.