Chapter C.1, Problem 17E

In each of Exercises C.11–C.17 identify the following:

1. a.   the response, variable
2. b.   the factors
3. c.   the levels of each factor
4. d.   the number of treatment combinations
5. e.   the experimental units
6. f.    the number of observations for each treatment combination
7. g.   the experimental factors, if any
8. h.  the classification factors, if any
9. i. whether the study is a designed experiment or an observational study

C.17 Advertising and Sales. A chain of convenience stores wanted to test three different advertising policies:

Policy 1: No advertising

Policy 2: Advertise in neighborhoods with circulars

Policy 3: Use circulars and advertise in newspapers

Suppose that 18 stores were obtained by randomly selecting six stores from each of three location types: urban, suburban, and rural. Then within each location type, the six stores were randomly divided into three groups of two stores. Each group of two stores used one of the three policies. Following the implementation of the policies, sales figures were obtained for each of the stores during a 1-month period. The figures are displayed, in thousands of dollars, in the following table.