Question: ( a ) test for difference in means between test vs controls for both products ( watch the # of stores ) , ( b
a test for difference in means between test vs controls for both products watch the # of storesb provide a unit sales forecast with and without ads use the "sales potential" information and the "represented X of sales" informationc estimate profits with and without ads for Arizona and California assume they are running the same ad that was used in the experiment, ie treat the development of the ads as a sunk cost, and the M ad budget in this rollout is the national total, ie you need to adjust it for Arizona and California combined based on population tracks with the retailer's national sales percentages
In other words, you only do AZ and CA; you need to think of them as one joint market; the M national ad budget needs to be prorated for AZCA based on population the and figure can be used for this purpose actual numbers are and
Arizona for four weeks from June to July The company purchased gross
rating points GRPs for the television advertisements for a total cost of $ The ads were
aimed at girls between the ages of and and were aired on local cable channels, such as
Nickelodeon and the Cartoon Network. Management also purchased GRPs for radio
commercials for a total cost of $ The radio commercials were aired during morning and
evening commutes. Each of the television and radio programs selected for the commercials
reached about of the population in Phoenix. The cost of developing the commercial
through an outside agency was $
Management estimated that an equivalent ad budget for eight to ten weeks of preholiday
advertising, factoring in certain economies as well as the higher seasonal cost of media, would be
approximately $ million. The average retail selling price of Betty Spaghetty during the test was
about $ Retailer and Ohio Art margins were about the same as for EAS, and
respectively. Given that some time would be required to read the test, obtain shelf space, and
ship product to stores, management estimated that the fourweek test market sales period
represented about of the total remaining sales potential for the year.
Table reports weekly sales in Arizona stores test and in stores of the same mass
merchant in California control for two versions of Betty Spaghetty. The stores represented
of the retailer's Arizona sales and of California sales, respectively. Arizona and California
represented and respectively, of the retailer's national sales, and that same retailer was
expected to account for of total Betty Spaghetty sales. Management intended to use the test
to help estimate Betty Spaghetty sales with and without advertising.
Table Weekly unit sales of Betty Spaghetty in test and control cities.
Data source: Ohio Art. Used with permission. Please show step by step setup in Excel for questions a b and c above.
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