A company markets its products by direct mail. An experiment was conducted to study the effects...

Transcribed Image Text:

A company markets its products by direct mail. An experiment was conducted to study the effects of three factors on the customer response rate for a particular product. The three factors are A = type of mail used (3rd class, 1st class), B = type of descriptive brochure (color, black-and-white), and C=offer price ($19.95, $24.95). The mailings are made to two groups of 8,000 randomly selected customers, with 1,000 customers in each group receiving each treatment combination. Each group of customers is considered as a replicate. The response variable is the number of orders placed. The experimental data is shown below. Run 1 2 49S7WN 3 5 6 7 8 Coded Factors B A (class) B (type) C (S) с Number of Orders BW $19.95 Replicate 1 50 44 46 42 49 48 47 56 Factor Levels Low (1) High (+1) 3rd 1st Color $24.95 Replicate 2 54 42 48 43 46 45 48 54 (a) Analyze the data from this experiment. Which factors significantly affect the customer response rate? (b) Analyze the residuals from this experiment. Are there any indications of model inadequacy? (c) What would you recommend to the company? A company markets its products by direct mail. An experiment was conducted to study the effects of three factors on the customer response rate for a particular product. The three factors are A = type of mail used (3rd class, 1st class), B = type of descriptive brochure (color, black-and-white), and C=offer price ($19.95, $24.95). The mailings are made to two groups of 8,000 randomly selected customers, with 1,000 customers in each group receiving each treatment combination. Each group of customers is considered as a replicate. The response variable is the number of orders placed. The experimental data is shown below. Run 1 2 49S7WN 3 5 6 7 8 Coded Factors B A (class) B (type) C (S) с Number of Orders BW $19.95 Replicate 1 50 44 46 42 49 48 47 56 Factor Levels Low (1) High (+1) 3rd 1st Color $24.95 Replicate 2 54 42 48 43 46 45 48 54 (a) Analyze the data from this experiment. Which factors significantly affect the customer response rate? (b) Analyze the residuals from this experiment. Are there any indications of model inadequacy? (c) What would you recommend to the company?

Answer rating: 100% (QA)

a To analyze the data we can perform analysis of variance ANOVA on the customer response rate using ... View the full answer