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    One Way ANOVA analysis

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    Consider a large chain of supermarkets that sell their own brand of potato chips in addition to many other name brands. Management would like to know whether the type of display used for the store has any effect on sales. Because there are four types of displays being considered, management decides to choose 24 similar stores to serve as experimental units. A random six of these are instructed to use display type 1, another random six to use display type 2, a third random six to use display type 3, and the final 6 stores to use display type 4. For a period of one month each store keeps track of the fraction of total potato chip sales that are of the store brand. The data for these 24 stores is in the attached file. Note that one of these store susing display 3 has a blank cell. This store did not follow instructions properly, so its observation is disregarded.

    Comparing Four Different Types of Displays in Selling a Brand of Potato Chips

    Display_1 Display_2 Display_3 Display_4
    0.26 0.28 0.35 0.15
    0.21 0.35 0.37 0.19
    0.32 0.19 0.26 0.21
    0.14 0.27 * 0.23
    0.20 0.21 0.23 0.31
    0.25 0.29 0.32 0.16

    a. Why do you think each store keeps track of the fraction of total potato chip sales that are of the store brand? Why do they not record the total amount of sales of the store brand potato chips?

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    Solution Preview

    Please refer attached solution for complete details. Tables and work done with the help of equation writer may not print here properly.


    With the help of given data, we run one way ANOVA analysis on MS Excel, Following analysis is obtained.

    Anova: Single Factor

    Groups Count Sum Average Variance
    Column 1 6 1.38 0.23 0.00376
    Column 2 6 1.59 0.265 ...

    Solution Summary

    Solution describes the steps involved in ANOVA analysis to test whether a display method have any role in changing sales of a particular product.