STAT_371_Spring_2010_Assignment_2

# STAT_371_Spring_2010_Assignment_2 - STAT 371 Spring 2010...

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STAT 371 Spring 2010 Assignment 2 Due: Thursday June 3 (in class) 1. In a marketing trial, in-store promotions were compared in a test market. Forty convenience stores were chosen and ten were assigned at random to each promotion. The response variate was the value of sales ( sales ) in one week with the promotion in place. The marketers also measured the value of sales in the previous week ( past.sales ) for each store in the trial. In the data file ( ass2q1.txt ), there are four indicator variates x1, x2, x3, x4 . Note that if a store had promotion i , then xi is 1. Consider a statistical model of the form 12 3 4 1 2 3 4 , 1,. ..,40 ii i i i i sales x x x x R i β βββ =+ + + + = where we assume 4 0 , ,..., ~ (0, ) RR R G σ and that 4 0 , ,..., R are independent. a) Carefully interpret the parameters 31 and . b) Fit the above model. (the model statement sales ~ -1+… avoids the intercept). Is there any evidence in the data of a difference in average sales for promotion 3 versus promotion 1?

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## This note was uploaded on 05/12/2011 for the course STAT 371 taught by Professor Ahmed during the Fall '09 term at Waterloo.

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STAT_371_Spring_2010_Assignment_2 - STAT 371 Spring 2010...

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