PROBLEM SHEET V

1.

A sales manager has experienced with four different sales approaches

and has a large group of salesmen applying each of four approaches
(A, B, C and D). He samples at random from each group, thus
obtaining the data shown below in the table. Analyse this data using
analysis of variance (0.05 level) in testing whether any real
difference exists between the four sales approaches as they relate to
the successful completion of sales.
Rupees of Sale Resulting from Application of Four Sales
Approaches
Sales Approach
A
B
C
D
12
14
10
17
11
15
9
12
16
13
11
14
14
12
8
13
10
7
10
13
9
Total 76
54
54
66

2.

A marketing researcher wishes to test whether any significant

difference exists between the performances of three retail stores in
their sales of a particular product. Test whether the average of the
retail store sales are equal at the 0.05 level. Tubular values represent
in Rs. lakhs.
I
12
14
6
12
13

3.

Retail Stores
II
16
15
17
19

III
13
12
10
9
14
13

Four different give-away premiums are being tried in a test area to

determine if any significant difference exists in their ability to attract
buying customers. Sales are recorded for the stores using each of the
four premiums. Test at the 0.01 level. Tubular values represent sales
in Rs. lakhs.

I
35
42
63
21
13
4.

III
43
49
55
50

IV
50
43
36
42
80
70

An investor has some money which he wants to invest in shares.

Obviously, he would like to invest in those shares promise higher
returns. Also, he doesnt want to invest all his money in one; rather
he wants to distribute it in three shares. He has collected the
following information on five different shares in ten randomly
selected time periods. Can you help the investor in deciding which
three shares to invest his money in? (Note: The last two rows give the
column sum and column SS respectively).
DCM
28.32
22.71
14.41
22.82
26.92
31.46
26.80
16.32
26.68
21.77
237.71
5878.6

5.

Premium
II
48
60
33
39
40

RATE OF RETURN IN
JK
LCP
40.65
33.98
30.62
43.61
32.98
36.77
24.80
31.56
32.17
37.00
25.23
40.00
21.83
27.60
29.64
34.60
32.05
48.88
35.54
34.07
305.51
367.98
9609.6
13876.0

ABC
33.75
24.64
19.77
30.79
33.54
24.44
25.75
18.51
30.14
24.97
266.30
7344.9

XYZ
27.73
26.73
32.59
24.35
30.15
31.10
33.68
31.84
25.01
29.31
291.47
8585.0

Six competing brands of two-wheelers are compared on their mileage

on city roads. Ten users of each two-wheeler are selected at random
and data on mileage are collected from them. After scrutiny, 2
observations for brand 2, 1 observation of brand 3 and 3 observations
of brand 5 are discarded from consideration. The sample means and
standard deviations of mileage for the six different brands of twowheelers are then calculated which are given below. Test at a 5%
level of significance that there is no significant difference in the
average mileage of the six brands of two-wheelers under
consideration.

Two-wheeler Brand
Valid Sample Size
Mean Mileage
SD of Mileage

1
10
41.87
8.67

2
8
40.10
8.20

3
4
5
6
9
10
7
10
44.56 50.10 40.49 47.30
5.79 10.24 10.51 12.17

TWO-WAY ANALYSIS OF VARIANCE

6.

A researcher wishes to test four sale techniques to determine whether

a significant difference exists between them. He reasons that the size
of store will make a substantial contribution to total variability and
decides to stratify his stores according to size, the strata or blocks
being large, medium, and small stores. He then randomly selects four
stores from each block and randomly assigns a different treatment
(sales technique) to each of the four stores in an individual block.
Such an approach assures him that every sales technique is tried in
each size of store. The resultant sale are shown in the table below:-

Sales Resulting from Test of Four Sales Techniques Randomized Block

Design-one Observation per Cell
Sales technique
Size of store
I Large
II Medium
III Small
Total
7.

Total

20
16
12
48

25
18
14
57

23
20
16
59

22
19
15
56

90
73
57
220

The Sales and Promotions Manager of a company which sells a wellknown drink wishes to know whether any difference exists between
promotion campaigns on college campus. He is also interested in
knowing whether differences exist in type of college (day, residential,
and semi-residential). The Sale Manager suspects that some
interaction may be occurring between the two classifications. Make
the necessary tests for the following data at the 0.01 level.

Promotional technique

8.

Inc.
Cat.
1
1
1
1
1
2
2
2
2
2
9.

College type
Day

A
20
25
18

B
22
24
19

C
17
18
15

D
10
15
14

Residential

12
15
16

28
27
25

23
25
21

17
18
19

Semi-residential

17
19
26

16
21
20

30
32
26

23
24
27

A product was test-marketed to identify the market segment. The

entire market was divided into 5 zones and in each zone, six income
categories were considered. The sales data is tabulated below. The
manufacturer of the product does not believe that, in the target
population, incomes vary significantly across the zones. Would you
conclude that sales are significantly different in all the zones and in
all the income categories? (Overall s.d. = 6.86).
Zone

Sales

1
2
3
4
5
1
2
3
4
5

13
23
27
14
28
24
22
24
16
38

Inc
Cat.
3
3
3
3
3
4
4
4
4
4

Zone

Sales

1
2
3
4
5
1
2
3
4
5

21
19
17
21
19
28
21
28
17
25

Inc
Cat.
5
5
5
5
5
6
6
6
6
6

Zone

Sales

1
2
3
4
5
1
2
3
4
5

40
17
26
28
20
17
18
36
33
20

A new HRD Manager of a company is very enthusiastic about his

job. He has worked out an all round development plant for the
workers. But while discussing the plan with the workers, he finds
that most of them are very reluctant to any training as they strongly
believe that a workers salary is dependent only on the number of
years one has spent in the company rather than how skilled one is to
do specific jobs. In order to investigate into the workers complaints,
he HRD manager selects exactly one employee from each skill and
experience combination category and obtains the following
4

information, where mean salary is the mean salary in nearest

thousand rupees. The overall standard deviation of salary for the
entire sample is 6.36. On the basis of the data, would you conclude
that the workers complaints were right?

10.

Level of Skill

Mean salary

Unskilled
Semi-skilled
Skilled
High skilled
Very High
skilled

29.50
25.75
26.75
31.75
28.75

Experience Mean
(in year)
Salary
<3
22
3-5
26
5-8
32
>8
34

RELIABLE tyre dealer supplying three brands of tyres (T 1, T2, T3) to

automobile manufacturing company wishes to identify suitability of
each brand of its tyres for the four brands of car (C 1, C2, C3, C4).
Practically, the dealer to determine whether one particular brand of
tyre more mileage than others for a particular brand of car. For this
purpose, dealer collects data on mileage (in 000 kilometers) for each
brand of tyre on each of the four brands of cars. The same are
presented below:-

T
Y
R
E

T1

T2
B
R
A
N
D

T3

CAR
C2
34
40
42
45
36
38
42
43
44
45
37
38

C1
30
40
42
33
35
39
41
39
34
38
39
35

BRAND
C3
38
39
40
42
40
43
41
32
30
28
32
29

C4
36
38
39
40
41
39
40
42
45
43
42
46

Analyze the date and draw relevant inferences at = 0.05

[Given that Pr{F(2,36)>3.25945}=Pr{F(3,36)>2,86627} = Pr{F(6,36>2.36375}=0.05]