Assignment:
Mark is the owner of Marks Pizza, Ice Cream, and Coffee Palace - an establishment that prides itself on providing essential survival supplies for college students. He is currently selling pizzas in a small shop on Cib Ave. in Vvallis, but is considering an expansion of his current business to other campuses and needs help making this decision. He's collected some data and asks you to help her analyze and present it to the Small Business Administration loan officer who will either reject her proposal or provide funding for the proposed expansion.
Each of the following 4 worksheets has a data set and one or more questions. Analyze the data, answer the questions, and report your conclusions and recommendations in a 1-2 page business memo written in Microsoft Word . Data calculations should not be placed in the meme - you should attach your Excel spreadsheets.
Decision One: ANOVA
Q1: Deb is contemplating three new locations for her pizza business - adjacent to campuses in Portland, Eugene, and Salem A random survey of 27 pizza shops in those locations is conducted with 9 stores surveyed in each location. (Deb hired college students to sit in the stores and eavesdrop on the pizza ordering clerk). The number of pizzas sold per hour was tallied and the students then computed the sales volume in actual dollars. Deb wants to know if there is a significant difference in location.
a) What are the null and alternate hypotheses?
b) What are the degrees of freedom for the numerator and denominator?
c) What is the critical value of F at the 5% level of significance?
d) What is the mean square for treatments?
e) What is the computed value of F?
f) What is your decision?
| Pizza Sales |
| Portland |
Eugene |
Salem |
| 375.11 |
529.40 |
443.69 |
| 412.41 |
430.33 |
440.12 |
| 387.94 |
480.50 |
471.17 |
| 399.74 |
512.89 |
424.86 |
| 385.32 |
528.76 |
430.96 |
| 370.02 |
500.19 |
408.57 |
| 420.71 |
569.41 |
511.38 |
| 419.40 |
541.46 |
487.46 |
| 411.97 |
514.79 |
457.94 |
If you find a significant difference, construct 95% confidence intervals in order to determine which location(s) might be different. Your recommendation to Deb should include the location(s) where she can expect the optimum sales.
Q2: Deb is trying to decide whether to launch an ad campaign that would possibly boost sales. Her dilemma is whether the campaign would pay for itself. She knows that sales of her Pepperoni Mushroom Olive and Hawaiian pizzas are remarkably consistent, so she decides to try a small version of the promotion on the Pepperoni Mushroom Olive pizza and compare it to sales of the Hawaiian pizza.
You take a random sample of pizzas sold during a one hour period over the next week. Theresults are shown in the table to the left of this box. Does the ad campaign make a difference?
| Pizza Sales |
Group 1
Pepperoni Mushroom Olive Slices sold with expensive ad campaign and promotion
|
Group 2
Hawaiian Slices sold without expensive ad campaign and promotion
|
| 18 |
25 |
| 24 |
30 |
| 27 |
27 |
| 25 |
24 |
| 25 |
22 |
| 20 |
26 |
| 27 |
23 |
| 25 |
20 |
| 24 |
22 |
| 20 |
24 |
Attachment:- decision.rar