The Miltmore Corporation performs consulting services for companies that think they have image problems. Recently, the Bluedot Beer Company approached Miltmore. Bluedot executives were concerned that the company’s image, relative to its two closest competitors, had diminished. Miltmore conducted an image study in which a random sample of 8 people was asked to rate Bluedot’s image. Five people were asked to rate competitor A’s image, and 10 people were asked to rate competitor B’s image. The image ratings were made on a 100-point scale, with 100 being the best possible rating. Here are the results of the sampling.

a. Based on these sample results, should Bluedot conclude there is an image difference among the three companies? Use a significance level equal to 0.05.

b. Should Bluedot infer that its image has been damaged by last year’s federal government recall of its product? Discuss why or why not.

c. Why might the decision maker wish to use parametric ANOVA rather than the corresponding nonparametric test? Discuss.

Transcribed Image Text:

Bluedot Competitor A Competitor B 95 50 80 92 90 87 93 51 63 40 90 20 96