The Coca-Cola Company introduced New Coke in 1985. Within three months of this i
ID: 3221789 • Letter: T
Question
The Coca-Cola Company introduced New Coke in 1985. Within three months of this introduction, negative consumer reaction forced Coca-Cola to reintroduce the original formula of Coke as Coca-Cola Classic. Suppose that two years later, in 1987, a marketing research firm in Chicago compared the sales of Coca-Cola Classic, New Coke, and Pepsi in public building vending machines. To do this, the marketing research firm randomly selected 10 public buildings in Chicago having both a Coke machine (selling Coke Classic and New Coke) and a Pepsi machine.
The Coca-Cola Data and a MINITAB Output of a Randomized Block ANOVA of the Data:
Two-way ANOVA: Cans versus Drink, Building
(a-1) Calculate the value of the test statistic and p-value. (Round "test statistic" value to 2 decimal places and "p-value" to 4 decimal places.)
(a-2) At the 0.05 significance level, what is the conclusion?
(b) What is the Tukey simultaneous 95 percent confidence interval for the following? (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
Building 1 2 3 4 5 6 7 8 9 10 Coke Classic 45 136 134 41 146 33 71 224 111 87 New Coke 6 114 56 14 39 20 42 156 61 140 Pepsi 24 90 100 43 51 42 68 131 74 107 Suppo ya Classic, New Coke, and Pepsi n public building wending machines. To do this, the marketing rosearch fim randomly sclected 10 pubic build in Chicago havng both a Coko machine seling Coke Classi and New Cokey and a Pepsi machine The Coca-Cola D nd a MNT AE Output Randomized Block ANOWA the Dala. ANOVA C Drink Building Building test statistic and pralue. (Ro "test statistic" to 2 d places and "v-value" to 4 Test not reject Ho Wha he Tukey si neous 36 percant confide non interval thA followi UNAgarive amounts dicated by a d your an to 3 d markAting in Dhicago compared
Explanation / Answer
General Linear Model: Sales versus Building, Drink
Factor Type Levels Values
Building fixed 10 1, 10, 2, 3, 4, 5, 6, 7, 8, 9
Drink fixed 3 Coke Classic, New Coke, Pepsi
Analysis of Variance for Sales, using Adjusted SS for Tests
Source DF Seq SS Adj SS Adj MS F P
Building 9 55573.5 55573.5 6174.8 8.93 0.000
Drink 2 7997.6 7997.6 3998.8 5.78 0.011
Error 18 12443.7 12443.7 691.3
Total 29 76014.8
S = 26.2929 R-Sq = 83.63% R-Sq(adj) = 73.63%
Unusual Observations for Sales
Obs Sales Fit SE Fit Residual St Resid
13 146.000 101.267 16.629 44.733 2.20 R
28 87.000 133.933 16.629 -46.933 -2.30 R
29 140.000 95.933 16.629 44.067 2.16 R
R denotes an observation with a large standardized residual.
Grouping Information Using Tukey Method and 95.0% Confidence
Drink N Mean Grouping
Coke Classic 10 102.8 A
Pepsi 10 73.0 A B
New Coke 10 64.8 B
Means that do not share a letter are significantly different.
Tukey 95.0% Simultaneous Confidence Intervals
Response Variable Sales
All Pairwise Comparisons among Levels of Drink
Drink = Coke Classic subtracted from:
Drink Lower Center Upper ---+---------+---------+---------+---
New Coke -68.02 -38.00 -7.984 (---------*---------)
Pepsi -59.82 -29.80 0.216 (---------*---------)
---+---------+---------+---------+---
-60 -30 0 30
Drink = New Coke subtracted from:
Drink Lower Center Upper ---+---------+---------+---------+---
Pepsi -21.82 8.200 38.22 (---------*---------)
---+---------+---------+---------+---
-60 -30 0 30
a)
p-value = 0.011
b)Reject Ho hypothesis.
Reject Ho
c)
Drink = New Coke subtracted from:
Drink Lower Center Upper ---+---------+---------+---------+---
Coke Classic 7.984 38.00 68.02 (---------*---------)
---+---------+---------+---------+---
-30 0 30 60
Tukey 95.0% Simultaneous Confidence Intervals
Response Variable Sales
All Pairwise Comparisons among Levels of Drink
Drink = Pepsi subtracted from:
Drink Lower Center Upper ---+---------+---------+---------+---
New Coke -38.22 -8.200 21.82 (---------*---------)
Coke Classic -0.22 29.800 59.82 (---------*---------)
---+---------+---------+---------+---
-30 0 30 60
p-value = 0.011
b)Reject Ho hypothesis.
Reject Ho
c)
Drink = New Coke subtracted from:
Drink Lower Center Upper ---+---------+---------+---------+---
Coke Classic 7.984 38.00 68.02 (---------*---------)
---+---------+---------+---------+---
-30 0 30 60