Question
A market research firm is studying the effects of price and type of packaging on sales of a particular product.Twenty-seven stores with shoppers of similar characteristics will be used in the study The nine combinations of three price levels and three packaging types are the treatments of interest Total sales af the product over a seven-week period will be recorded. Which of the following describes the best design to use for the study? A A completely randomized design. Randomly assign the nine combinations of price and packaging type so that three stores use each combination B A completely randomized design. Randomly assign the three price levels so that nine stores use each price level C A completely randomized design Randomly assign the three packaging types so that nine stores use each type of packaging
Answer
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Jasper
Veteran · Tutor for 9 years
Answer
A. A completely randomized design. Randomly assign the nine combinations of price and packaging type so that three stores use each combination
Explanation
The problem involves studying the effects of two factors (price and packaging type) on sales, with multiple levels for each factor. The best design for such a study is a completely randomized design where each combination of the factors is assigned to the stores. This ensures that each combination of price and packaging type is tested equally across the stores, allowing for a clear analysis of their effects on sales.