Chapter 8.3, Problem 86E

a)

To determine

To list the treatments for this experiment.

Explanation of Solution

Given:

The researcher will use all combinations of the two factors.

Following is the list of treatments:

T1: 25% of food on sale, 60% off

T2: 25% of food on sale, 40%-70% off

T3: 50% of food on sale, 60% off

T4: 50% of food on sale, 40%-70% off

T5: 75% of food on sale, 60% off

T6: 75% of food on sale, 40%-70% off

T7: 100% of food on sale, 60% off

T8: 100% of food on sale, 40%-70% off

b)

To determine

To describe the procedure how would assign 200 volunteer subjects to treatments.

Explanation of Solution

Given:

The researcher will use all combinations of the two factors.

Following is the list of treatments:

T1: 25% of food on sale, 60% off

T2: 25% of food on sale, 40%-70% off

T3: 50% of food on sale, 60% off

T4: 50% of food on sale, 40%-70% off

T5: 75% of food on sale, 60% off

T6: 75% of food on sale, 40%-70% off

T7: 100% of food on sale, 60% off

T8: 100% of food on sale, 40%-70% off

First need to assign each subject a unique code between 1 to 200. Therefore, by using any simulation need to draw randomly a 3-digit number. After drawing a number, select a corresponding subject for the treatment and then move on to the next 3-digit number. Using this procedure we can assign all the volunteer subjects to the treatments.

c)

To determine

To explain the purpose of random assignment.

Explanation of Solution

Given:

The researcher will use all combinations of the two factors.

Following is the list of treatments:

T1: 25% of food on sale, 60% off

T2: 25% of food on sale, 40%-70% off

T3: 50% of food on sale, 60% off

T4: 50% of food on sale, 40%-70% off

T5: 75% of food on sale, 60% off

T6: 75% of food on sale, 40%-70% off

T7: 100% of food on sale, 60% off

T8: 100% of food on sale, 40%-70% off

There are some reasons behind the random assignment. We randomly assign the subjects to a treatment group such that the different treatment groups are as similar as possible prior to the treatments. To avoid the wrong conclusion, we need to assign subjects randomly to the treatments. We can conclude that the differences among the different treatment groups.

d)

To determine

To explain the description how percent on sale and precise discount versus range of discounts influence the attractiveness of sale.

Explanation of Solution

Given:

The researcher will use all combinations of the two factors.

Following is the list of treatments:

T1: 25% of food on sale, 60% off

T2: 25% of food on sale, 40%-70% off

T3: 50% of food on sale, 60% off

T4: 50% of food on sale, 40%-70% off

T5: 75% of food on sale, 60% off

T6: 75% of food on sale, 40%-70% off

T7: 100% of food on sale, 60% off

T8: 100% of food on sale, 40%-70% off

There is mean score of sale increases when percent of good on sale increases if the percent if precise. Also, we observed that the mean score decreases slightly as the percent of good on sale increase if the percent is a range. And finally, the score observed to be highest for a high percent of goods on sale with a precise percent.