STATISTICS 402 - Assignment 4 Due March 3, 2006 1. Oleoresin is obtained from pine trees by cutting a hole in the bark and collecting the resin that seeps out. We want to design an experiment to see if the shape of the hole (circle, triangle or rectangle) has an effect on the amount of resin obtained. A second factor, the application of an acid (no acid or acid) to the hole is to be investigated in a two factor completely randomized experiment. (a) What are the response, conditions (factors and levels the experimenter is going to manipulate) and units used in this experiment? (b) The experimenter will use factorial crossing to create the treatment combinations. How many treatment combinations will there be in the experiment? List all treatment combinations. (c) The experimenter would like to be able to detect a difference in treatment means of 2.5 standard deviations while keeping both chances of error at 5%. How many units will the experimenter need? (d) With this number of units, what size difference in factor level means can be detected when Alpha=0.05 and Beta=0.10? (e) Because of budget constraints, only 3 units are available for each treatment combination. How does this choice affect the size of the detectable difference in treatment means? in factor level means? Use Alpha=0.05 and Beta=0.10. (f) Come up with a randomization of the runs (assuming 3 units for each treatment combination) for the experiment. That is, give me the randomized order that you would use if you were the experimenter. 2. Most short-run supermarket strategies such as price reductions, media advertising, and in-store promotions and displays are designed to increase unit sales of particular products temporarily. Factorial designs have been employed to evaluate the effectiveness of such strategies. Two factors examined are Price Level (regular, reduced price and cost to the supermarket) and Display Level (normal display space, normal display space plus end-of-aisle display, twice the normal display space). A complete factorial experiment based on these two factors involves nine treatments. Suppose each treatment is applied three times to a particular product at a particular supermarket. Each application lasts a full week and the response variable of interest is unit sales for the week. To minimize treatment carryover effects, each treatment is preceded and followed by a week in which the product is priced at its regular price and is displayed in its normal manner. The data, numbers of items sold, are given on the next page. 1 Price --------------------Regular Reduced Cost Display Normal 949 1045 1051 1321 1327 1222 1557 1536 1638 Normal Plus 1031 1163 1151 1801 1940 1956 2502 2558 2461 Twice Normal 1201 1178 1080 1546 1521 1448 1772 1803 1912 (a) What is the response? What are the conditions? What are the units? (b) Are there any differences among the nine treatments? Support your answer with a statistical test of hypothesis. (c) Are there any differences among the three different displays? Support your answer with a statistical test of hypothesis. (d) If there are any differences among the three different displays, where are those differences? Support you answer with a multiple comparison procedure. (e) Are there any differences among the three different price levels? Support your answer with a statistical test of hypothesis. (f) If there are any differences among the three different price levels, where are those differences? Support you answer with a multiple comparison procedure. (g) Is there interaction between the two factors? Support your answer with a statistical test of hypothesis. (h) Construct an interaction plot. Comment on the plot and what it tells you about interaction between the two factors. (i) Construct a plot of residuals versus predicted values. Describe the plot and indicate what this tells you about the conditions necessary for the analysis of variance. (j) Look at the distribution of residuals. Describe the distribution of residuals. Indicate what this tells you about the conditions necessary for the analysis of variance. (k) What else does the distribution of residuals tell you about the experiment? 2