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The Coca-Cola Company introduced New Coke in 1985. Within three months of this i

ID: 3246605 • 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: Building 9 115 10 Coke Classic New Coke Pepsl 79 220 48 143 138 42 151 10 106 6 62 42 42 20 32 140 68 137 31 82 104 37 52 4 70 24 6107 Two-way ANOVA: Cans versus Drink, Building DF MS 6.80 7,68 Drink Building9 Error Total 9,728.54,864.23 49,436,1 5,492.90 12,872.9 72,037.5 006 18 29 715

Explanation / Answer

Answer:

Test statistic=5.32

P value =0.0153

Reject Ho.

95% CI

coke classic- New coke   (5.306, 69.494)

coke classic- pepsi (1.206, 65.394)

New coke- pepsi (-36.194, 27.994)

MINITAB output:

Analysis of Variance

Source

DF

Adj SS

Adj MS

F-Value

P-Value

Drink

2

8415

4207.4

5.32

0.0153

Building

9

45403

5044.7

6.38

0.0004

Error

18

14226

790.4

Total

29

68044

Grouping Information Using the Tukey Method and 95% Confidence

Drink

N

Mean

Grouping

coke classsic

10

105.3

A

pepsi

10

72.0

B

New coke

10

67.9

B

Means that do not share a letter are significantly different.

Tukey Simultaneous Tests for Differences of Means

Difference of Drink Levels

Difference
of Means

SE of
Difference

Simultaneous
95% CI

T-Value

Adjusted
P-Value

New coke - coke classsic

-37.4

12.6

(-69.494, -5.306)

-2.97

0.021

pepsi - coke classsic

-33.3

12.6

(-65.394, -1.206)

-2.65

0.041

pepsi - New coke

4.1

12.6

(-27.994, 36.194)

0.33

0.943

Individual confidence level = 98.00%

corrected result

Answer:

Test statistic=5.26

P value =0.0159

Reject Ho.

95% CI

coke classic- New coke   (5.080, 69.320)

coke classic- pepsi (0.980, 65.220)

New coke- pepsi (-36.220, 28.020)

Analysis of Variance

Source

DF

Adj SS

Adj MS

F-Value

P-Value

Drink

2

8321

4160.4

5.26

0.016

Building

9

45612

5068.0

6.40

0.000

Error

18

14250

791.7

Total

29

68183

Tukey Simultaneous Tests for Differences of Means

Difference of Drink Levels

Difference
of Means

SE of
Difference

Simultaneous
95% CI

T-Value

Adjusted
P-Value

New coke - coke classsic

-37.2

12.6

(-69.320, -5.080)

-2.96

0.022

pepsi - coke classsic

-33.1

12.6

(-65.220, -0.980)

-2.63

0.043

pepsi - New coke

4.1

12.6

(-28.020, 36.220)

0.33

0.943

Individual confidence level = 98.00%

Source

DF

Adj SS

Adj MS

F-Value

P-Value

Drink

2

8415

4207.4

5.32

0.0153

Building

9

45403

5044.7

6.38

0.0004

Error

18

14226

790.4

Total

29

68044