Marketing Management

1. What is the relationship between analysis of variance and the t-test?

2. What is total variation? How is it decomposed in a one-way analysis of variance?

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3. What is the null hypothesis in one-way ANOVA? What basic statistic is used to test the null hypothesis in one-way ANOVA? How is this statistic computed?

The current advertising campaign for a major automobile brand would be changed if fewer than 70 percent of the consumers like it.

a. Formulate the null and alternative hypotheses.

b. Which statistical test would you use? Why?

c. A random sample of 300 consumers was surveyed, and 204 respondents indicated that they liked the campaign. Should the campaign be changed? Why or why not?

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