Question

In Exercises 1.92-1.97, we present descriptions of designed experiments. In each case, identify the

(a) experimental units

(b) response variable

(c) factor (s)

(d) levels of each factor:-

(e) treatments.

Increasing Unit Sales. Supermarkets are interested in strategies to increase temporarily the unit sales of a product. In one study, researchers compared the effect of display type and price on unit sales for a particular product. The following display types and pricing schemes were employed.

• Display types: normal display space interior to an aisle, normal display space at the end of an aisle, and enlarged display space.
• Pricing schemes: regular price, reduced price, and cost.

Short answer

(a) experimental units:- batches of a product that are sold.

(b) response variable:- the units sold of the product.

(c) factor (s):- display type and pricing schemes.

(d) levels of each factor:- normal display space interior to an aisle, normal display space at the end of an aisle, and enlarged display space from Display types.

Regular price, reduced price, and cost from Pricing schemes.

(e) treatments:- It is a mix of display types and pricing scheme levels.

Step-by-step solution

Part (a) Step 1. Given information.

The given statement is:

Supermarkets are interested in strategies to increase temporarily the unit sales of a product. In one study, researchers compared the effect of display type and price on unit sales for a particular product.

Part (a) Step 2. Identify the experimental units.

Taking into consideration the given designed experiment, Experimental units are the batches of a product that are being marketed, and sometimes they may even refer to stores as experimental units.

Part (b) Step 1. Identify the response variable.

The response variable is the number of units of the product being sold.

Part (c) Step 1. Identify the factor.

Here, the factors include:

1. display type
2. pricing schemes

Part (d) Step 1. Identify the levels of each factor.

The three levels of display type are:

1. Normal inner aisle display space,
2. normal end-of-aisle display space,
3. increased end-of-aisle display space

The three levels of pricing are:

1. Regular price,
2. reduced price
3. cost

Part (e) Step 1. Identify the treatments.

Treatments are a mix of display types and pricing scheme levels.