The marketing department of a major advertising firm has undertaken a survey to determine the efficacy


  1. The marketing department of a major advertising firm has undertaken a survey to determine the efficacy of live sales pitches to be used in direct telephone sales of a client's new product. Towards this end, potential customers are randomly dialed and one of the five scripts (sales pitches) is randomly selected to see if the customer is willing to place an order. Upon completion of the survey during the following eight weekdays, the total number of orders taken per day, y, using each script (S 1, S2, S3, S4, S5) is ascertained as follows:
    NUMBER OF SALES PER DAY (Y ij )
    SALES PITCH/SCRIPT (Si)
    #1 #2 #3 #4 #5
    300 408 374 290 450
    320 359 482 392 362
    392 362 413 309 385
    309 385 463 301 391
    301 371 474 300 389
    342 420 385 295 350
    360 325 399 285 375
    335 410 384 298 420
    After stating all necessary assumptions, and at the 5% sig. level, test the hypotheses that all the sales pitches are equally effective on average and which (if any) of the sales pitches appears superior. Clearly indicate ail the steps of your analysis and carry out all answers to the nearest thousandth. If necessary, the critical values may be interpolated from the relevant tables or from your computer.
  2. At the 5% significance level, test the hypothesis that each sales pitch led to equally consistent sales (i.e., revealed the same degree of variability in sales). Clearly indicate all the steps of your analysis and carry out all answers to the nearest thousandth. If necessary, the critical values may be interpolated from the relevant tables or from your computer.
    Extra Credit #1 (Max 5 Points): For Q# I, at the 5% sig. level, show all the pairs of sales pitches that reveal a statistically significant difference in mean sales. What is the relevance of the result in Q#2 to Q#1. if any?
  3. In order to assess the possible relationship between sales and type sales media employed, a marketing firm selects Newspaper (N), Magazine (M). and Direct Mail (D) at random each month using the same sales script (there are no seasonalities in this product's sales). The resultant sales are then disaggregated into the three levels High (HI), Medium (MED), and Low (LO). If after completion of 300 advertisements the results tabulated below are found, test the hypothesis at the 10% sig. level that advertising medium and sales level are statistically independent (clearly indicate all the steps of your analysis, including assumptions).

ADVERTISING MEDIUM

N M D

LEVEL HI 36 26 31

OF MED 35 42 29

SALES LO 23 38 40

4. At a certain advertising firm it has been stated by the director of marketing that all business weekdays (not weekends) are equally likely (i.e.. are proportionately the same) for a client's customers to place orders using free "800" telephone numbers. If a random sample of the latest 500 phone sales records (100 for each day) reveals the following number of customer calls by day-of-week, test the marketing director's assertion at the 1% level.

WEEKDAY MON TUE WED THR FRI

# CALLS WITH SALES: 69 74 54 59 74

# CALLS WITH NO SALES: 31 26 46 41 26

Extra Credit #2 (Max 5 Points): For Q#4, develop a 99% CIE for the true proportion of Friday calls with no sales (what would be the minimum sample size to get this estimate to within 5%?)

Price: $25.52
Solution: The downloadable solution consists of 15 pages, 1052 words and 10 charts.
Deliverable: Word Document


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