Chapter 12.7, Problem 12.81ACA

Banning controversial sports team sponsors. Refer to the Journal of Marketing Research (October. 2015) study of the impact of banning a controversial sponsor on a sports team’s success, Exercise 9.34 (p. 522). Recall that markets for English soccer clubs were classified as one of four types: (1) banned alcohol sponsors but now have other sponsors, (2) banned alcohol sponsors and now have no other sponsors. (3) did not ban alcohol sponsors but now have other sponsors, and (4) did not ban alcohol sponsors and now have no other sponsors. To assess the impact of an alcohol ban in a market, the researchers computed the matching value loss (MVL) for each market and treated this as the dependent variable in the analysis. The data (simulated from information provided in the study) are saved in the file. Consider a model for mean MVL as a function of the qualitative independent variable, market type.

1. a. Give the equation of the model for E(MVL). Use market type “no ban/no other” as the base level for the qualitative independent variable.
2. b. Fit the model, part a, to the data. Give the least squares prediction equation.
3. c. Provide a practical interpretation of each of the estimated β’s in the model.
4. d. Conduct the global F-test for the model using α = .05. What inference can you make about the mean MVL values for the four markets?
5. e. The sample mean MVL values for the four markets were 8.52, 8.55, 6.63, and 6.38, respectively. Show how to find these sample means using only the p estimates obtained in part b.