Statistics for Business: Decision Making and Analysis, 3rd Edition

Questions for Thought

1. What’s the estimated value from the ANOVA regression given by the slopes in Table 4 for the change in sales in the Midwest if ads feature the small labor partition? What’s the simple way to get this estimate?

2. The standard errors of the slopes of the dummy variables in Table 4 are all the same (80.57) and less than the common standard error of the interactions (113.94). Why is that?

3. What happens to the profile plot in Figure 1 if we reverse the rows and columns of the data? (Let Price Partition define the x-axis and connect points in the same region.) Sketch the new plot. Do you still see the presence of interaction?

4. We don’t actually need further calculations to compare the effects of the price partitions within regions; ...