Write main effects model to relate to packaging and location

Assignment Help Basic Statistics

Reference no: EM131415742

Modeling product sales

A company wants to model the total weekly sales, y, of its product as a function of the variables packaging and location. Two types of packaging, P₁ and P₂, are used in each of four locations, L₁, L₂, L₃, and L₄.

(a) Write a main effects model to relate E(y) to packaging and location. What implicit assumption are we making about the interrelationships between sales, packaging, and location when we use this model?

(b) Now write a model for E(y) that includes interaction between packaging and location. How many parameters are in this model (remember to include β₀)? Compare this number to the number of packaging-location combinations being modeled.

SSE for main effects model = 422.36

SSE for interaction model = 346.65

Determine whether the data indicate that the interaction between location and packaging is important in estimating mean weekly sales. Use α = .05. What implications does your conclusion have for the company's marketing strategy?

Reference no: EM131415742

Questions Cloud

How to relax and to self-regulate some bodily states : Primary appraisal refers to the stage in emotional adjustment during which. is a good way to use physiological responses to help train people in how to relax and to self-regulate some bodily states

Define the various types of crimes and law : Define the various types of crimes and law. Who decides what is a crime? How has this evolved over time? Explain the importance of the Model Penal Code in creating state laws.

Prepare a journal entry for each transaction : Prepare a cash T-account, and compute the company's cash balance as of the end of January. Assume a beginning balance of $4,000.

Increase his employees job satisfaction : Raul is a new manager. He can increase his employees’ job satisfaction by: You have a real dislike for crickets. Working with them may cause you___________. How can this dilemma be resolved? Check all that apply.

Write main effects model to relate to packaging and location : Write a main effects model to relate E(y) to packaging and location. What implicit assumption are we making about the interrelationships between sales, packaging, and location when we use this model?

Find the monopolist profit-maximizing quantity and price : a. Find the monopolist's profit-maximizing quantity and price. b. Find the monopolist's profit. Please give clear answers, thank you.

Why net income is not equal to net cash flow from operation : Explain why net income is not equal to net cash flow from operations, and reconcile the two numbers.

Policy on both working and non-working moms : Suppose the government provides a subsidy of $50 per day to all families with children, regardless of their employment status. Show the potential impact of this policy on both working and non-working moms. Explain fully.

Could a cubic model be fit to the data : Write a quadratic model relating the mean durability, E(y), to the length of baking.- Could a cubic model be fit to the data? Explain.

User Account

All Pages