PROBLEM SHEET

1. A sales manager has experienced with four different sales approaches

and has a large group of salesmen applying each of four approaches
(A, B, C and D). He samples at random from each group, thus
obtaining the data shown below in the table. Analyse this data using
analysis of variance (0.05 level) in testing whether any real
difference exists between the four sales approaches as they relate to
the successful completion of sales.

Rupees of Sale Resulting from Application of Four Sales

Approaches
Sales Approach
A B C D
12 14 10 17
11 15 9 12
16 13 11 14
14 12 8 13
10 7 10
13 9
Total 76 54 54 66

2. A marketing researcher wishes to test whether any significant

difference exists between the performances of three retail stores in
their sales of a particular product. Test whether the average of the
retail store sales are equal at the 0.05 level. Tubular values represent
in Rs. lakhs.

Retail Stores
I II III
12 16 13
14 15 12
6 17 10
12 19 9
13 14
13

3. Four different give-away premiums are being tried in a test area to

determine if any significant difference exists in their ability to attract
buying customers. Sales are recorded for the stores using each of the
four premiums. Test at the 0.01 level. Tubular values represent sales
in Rs. lakhs.

1
 Premium
I II III IV
35 48 43 50
42 60 49 43
63 33 55 36
21 39 50 42
13 40 80
70

4. An investor has some money which he wants to invest in shares.

Obviously, he would like to invest in those shares promise higher
returns. Also, he doesn’t want to invest all his money in one; rather
he wants to distribute it in three shares. He has collected the
following information on five different shares in ten randomly
selected time periods. Can you help the investor in deciding which
three shares to invest his money in? (Note: The last two rows give the
column sum and column SS respectively).

RATE OF RETURN IN
DCM JK LCP ABC XYZ
28.32 40.65 33.98 33.75 27.73
22.71 30.62 43.61 24.64 26.73
14.41 32.98 36.77 19.77 32.59
22.82 24.80 31.56 30.79 24.35
26.92 32.17 37.00 33.54 30.15
31.46 25.23 40.00 24.44 31.10
26.80 21.83 27.60 25.75 33.68
16.32 29.64 34.60 18.51 31.84
26.68 32.05 48.88 30.14 25.01
21.77 35.54 34.07 24.97 29.31
237.71 305.51 367.98 266.30 291.47
5878.6 9609.6 13876.0 7344.9 8585.0

5. Six competing brands of two-wheelers are compared on their mileage

on city roads. Ten users of each two-wheeler are selected at random
and data on mileage are collected from them. After scrutiny, 2
observations for brand 2, 1 observation of brand 3 and 3 observations
of brand 5 are discarded from consideration. The sample means and
standard deviations of mileage for the six different brands of two-
wheelers are then calculated which are given below. Test at a 5%
level of significance that there is no significant difference in the
average mileage of the six brands of two-wheelers under
consideration.

2
 Two-wheeler Brand 1 2 3 4 5 6
Valid Sample Size 10 8 9 10 7 10
Mean Mileage 41.87 40.10 44.56 50.10 40.49 47.30
SD of Mileage 8.67 8.20 5.79 10.24 10.51 12.17

TWO-WAY ANALYSIS OF VARIANCE

6. A researcher wishes to test four sale techniques to determine whether

a significant difference exists between them. He reasons that the size
of store will make a substantial contribution to total variability and
decides to stratify his stores according to size, the strata or blocks
being large, medium, and small stores. He then randomly selects four
stores from each block and randomly assigns a different treatment
(sales technique) to each of the four stores in an individual block.
Such an approach assures him that every sales technique is tried in
each size of store. The resultant sale are shown in the table below:-

Sales Resulting from Test of Four Sales Techniques Randomized Block

Design-one Observation per Cell

Sales technique

Size of store A B C D Total

I Large 20 25 23 22 90
II Medium 16 18 20 19 73
III Small 12 14 16 15 57
Total 48 57 59 56 220

7. The Sales and Promotions Manager of a company which sells a well-

known drink wishes to know whether any difference exists between
promotion campaigns on college campus. He is also interested in
knowing whether differences exist in type of college (day, residential,
and semi-residential). The Sale Manager suspects that some
interaction may be occurring between the two classifications. Make
the necessary tests for the following data at the 0.01 level.

3
 Promotional technique

College type A B C D
Day 20 22 17 10
25 24 18 15
18 19 15 14

Residential 12 28 23 17
15 27 25 18
16 25 21 19

Semi-residential 17 16 30 23
19 21 32 24
26 20 26 27

8. A product was test-marketed to identify the market segment. The

entire market was divided into 5 zones and in each zone, six income
categories were considered. The sales data is tabulated below. The
manufacturer of the product does not believe that, in the target
population, incomes vary significantly across the zones. Would you
conclude that sales are significantly different in all the zones and in
all the income categories? (Overall s.d. = 6.86).

Inc. Zone Sales Inc Zone Sales Inc Zone Sales

Cat. Cat. Cat.
1 1 13 3 1 21 5 1 40
1 2 23 3 2 19 5 2 17
1 3 27 3 3 17 5 3 26
1 4 14 3 4 21 5 4 28
1 5 28 3 5 19 5 5 20
2 1 24 4 1 28 6 1 17
2 2 22 4 2 21 6 2 18
2 3 24 4 3 28 6 3 36
2 4 16 4 4 17 6 4 33
2 5 38 4 5 25 6 5 20

9. A new HRD Manager of a company is very enthusiastic about his

job. He has worked out an all round development plant for the
workers. But while discussing the plan with the workers, he finds
that most of them are very reluctant to any training as they strongly
believe that a worker’s salary is dependent only on the number of
years one has spent in the company rather than how skilled one is to
do specific jobs. In order to investigate into the workers’ complaints,
he HRD manager selects exactly one employee from each skill and
experience combination category and obtains the following

4
 information, where mean salary is the mean salary in nearest
thousand rupees. The overall standard deviation of salary for the
entire sample is 6.36. On the basis of the data, would you conclude
that the workers’ complaints were right?

Level of Skill Mean salary Experience Mean

(in year) Salary
Unskilled 29.50 <3 22
Semi-skilled 25.75 3-5 26
Skilled 26.75 5-8 32
High skilled 31.75 >8 34
Very High 28.75
skilled

10. RELIABLE tyre dealer supplying three brands of tyres (T 1, T2, T3) to
automobile manufacturing company wishes to identify suitability of
each brand of its tyres for the four brands of car (C 1, C2, C3, C4).
Practically, the dealer to determine whether one particular brand of
tyre more mileage than others for a particular brand of car. For this
purpose, dealer collects data on mileage (in ‘000 kilometers) for each
brand of tyre on each of the four brands of cars. The same are
presented below:-

CAR BRAND
C1 C2 C3 C4
30 34 38 36
T T1 40 40 39 38
Y 42 42 40 39
R 33 45 42 40
E 35 36 40 41
T2 39 38 43 39
41 42 41 40
B 39 43 32 42
R 34 44 30 45
A T3 38 45 28 43
N 39 37 32 42
D 35 38 29 46

Analyze the date and draw relevant inferences at œ = 0.05

[Given that Pr{F(2,36)>3.25945}=Pr{F(3,36)>2,86627} = Pr{F(6,36>2.36375}=0.05]