Question

# The Coca-Cola Company introduced New Coke in 1985. Within three months of this introduction, negative consumer...

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 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

Two-way ANOVA: Cans versus Drink, Building

 Source DF SS MS F P Drink 2 7997.6 3998.80 5.78 0.011 Building 9 55573.5 6174.83 8.93 0.000 Error 18 12443.7 691.32 Total 29 76014.8
 Descriptive Statistics: Cans Variable Drink Mean Cans Coke Classic 102.8 New Coke 64.8 Pepsi 73.0

(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?

• Reject H0

• Do not reject H0

(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 2 decimal places.)

a1)

F stat = 5.78

p value= 0.011

a2)

p value= 0.011 <α=0.05, reject Ho

Reject H0

b)

 Level of significance 0.05 no. of treatments,k 3 DF error =N-k= 18 MSE 691.32 q-statistic value(α,k,N-k) 3.6093

critical value = q*√(MSE/n) = 30.01

confidence interval = mean difference ± critical value

 confidence interval population mean difference critical value lower limit upper limit result µ1-µ2 38.00 30.01 7.99 68.01 means are different µ1-µ3 29.800 30.01 -0.21 59.81 means are not different µ2-µ3 -8.20 30.01 -38.21 21.81 means are not different

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