A company markets its products by direct mail. An experiment was conducted to study the 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 & white), and C = offered price ($20, $25). The mailings are made to two groups of 8000 randomly selected customers, with 1000 customers in each group receiving each treatment combination. Each group of customers is considered as a replicate. The response variable is the number of orders placed. The experimental data are shown below: Coded Factors Number of Orders Factor Levels Run A В Replicate 1 Replicate 2 Low (-1) High (1) A (class) В (type) C ($) 1 -1 -1 -1 50 54 3rd 1st -1 -1 44 42 BW Color 3 -1 1 -1 46 48 20 25 4 1 1 -1 42 43 5 -1 -1 49 46 1 -1 48 45 7 -1 1 1 47 48 8 1 1 1 56 54 2.

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ISBN:9781119256830
Author:Amos Gilat
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2k Factorial Problem
A company markets its products by direct mail. An experiment was conducted to study the 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 & white), and C = offered price ($20, $25).
The mailings are made to two groups of 8000 randomly selected customers, with 1000 customers in each
group receiving each treatment combination. Each group of customers is considered as a replicate. The
response variable is the number of orders placed. The experimental data are shown below:
Coded Factors
Number of Orders
Factor Levels
Run
A
в
Replicate 1
Replicate 2
Low (-1)
High (1)
A (class)
В (type)
C ($)
1
-1
-1
-1
50
54
3rd
1st
2
1
-1
-1
44
42
BW
Color
3
-1
-1
46
48
20
25
4
1
1
-1
42
43
-1
-1
1
49
46
1
-1
1
48
45
7
-1
1
1
47
48
8
1
1
56
54
1.
LC
Transcribed Image Text:2k Factorial Problem A company markets its products by direct mail. An experiment was conducted to study the 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 & white), and C = offered price ($20, $25). The mailings are made to two groups of 8000 randomly selected customers, with 1000 customers in each group receiving each treatment combination. Each group of customers is considered as a replicate. The response variable is the number of orders placed. The experimental data are shown below: Coded Factors Number of Orders Factor Levels Run A в Replicate 1 Replicate 2 Low (-1) High (1) A (class) В (type) C ($) 1 -1 -1 -1 50 54 3rd 1st 2 1 -1 -1 44 42 BW Color 3 -1 -1 46 48 20 25 4 1 1 -1 42 43 -1 -1 1 49 46 1 -1 1 48 45 7 -1 1 1 47 48 8 1 1 56 54 1. LC
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