The sales representative performed an experiment to test whether sending the complete program tapes for review by customers would increase sales. They selected 80 customers from the mailing list and randomly assigned 40 to receive the sample tapes and 40 to receive the full-program tapes for review. They then determined the number of tapes that were purchased and returned in each group. The results of the experiment are as follows:
Action Sample Full Total
Purchased 6 14 20
Returned 34 26 60
Total 40 40 80
a. At the 0.05 level of significance, is there evidence of a difference in the proportion of tapes purchased on the basis of the type of tape sent to the customer?
b. On the basis of the results of (a), which tape do you think a representative should send in the future? Explain the rationale for your decision.
The sales representatives also wanted to determine which of three initial sales approaches result in the most sales: (1)a video sales-information tape mailed to prospective customers, (2) a personal sales call to prospective customers, and (3) a telephone call to prospective customers. A random sample of 300 prospective customers was selected, and 100 were randomly assigned to each of the three sales approaches. The results, in terms of purchases of the full-program tapes, are as follows:
Action Videotape Personal Sales Call Telephone Total
Purchase 19 27 14 60
Don't purchase 81 73 86 240
Total 100 100 100 300
c. At the 0.05 level of significance, is there evidence of a difference in the proportion of tapes purchased on the basis of the sales strategy used?
d. If appropiate, use the Marascuilo procedure and a=0.05 to determine which sales approaches are different.
e. On the basis of the results of (c) and (d), which sales approach do you think a representative should use in the future? Explain the rationale for your decision.
The solution provides step by step method for the calculation of chi square test statistic and p value . Formula for the calculation and Interpretations of the results are also included.