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Advertising Sales Analysis Using AOV

The document describes an experiment that studied four types of advertisements: newspaper, radio, in-store salespeople, and in-store displays. Data on sales levels in 144 locations for each ad type were collected. The median overall sales value was 66.82 thousand dollars. The average sales for newspaper ads was 73.22 thousand dollars. The standard deviation of sales for radio ads was 12.97 thousand dollars. Analysis of variance was conducted using the aov() function, allowing the conclusion that the average sales levels were significantly different between the four ad types.

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Mandeep Singh
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8 views2 pages

Advertising Sales Analysis Using AOV

The document describes an experiment that studied four types of advertisements: newspaper, radio, in-store salespeople, and in-store displays. Data on sales levels in 144 locations for each ad type were collected. The median overall sales value was 66.82 thousand dollars. The average sales for newspaper ads was 73.22 thousand dollars. The standard deviation of sales for radio ads was 12.97 thousand dollars. Analysis of variance was conducted using the aov() function, allowing the conclusion that the average sales levels were significantly different between the four ad types.

Uploaded by

Mandeep Singh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Problem 1 (12 Marks)

Consider an experiment to study four types of advertisement: local newspaper ads, local radio ads,
in-store sales people and in-store displays. The country is divided into 144 locations and 36 locations
are randomly assigned to each type of advertising. The level of sales is measured in reach region in
thousands of dollars. You want to whether the average sales are significantly different for four types
of advertising. The [Link] dataset contains the following variables:

Ad type of advertising

Sales level of sales in thousands of dollars

Examine the data.

What is the overall median sales value?

Subset the data using subset argument and answer question

The median sales value is 66.82

rm(list=ls())
setwd("C:/Exam")
getwd()

[Link]()

totalads<-[Link]("[Link]")

totalads
[Link] = aov(Sales~Ad, data= totalads)
[Link]
summary([Link])
mean(totalads$Sales, [Link]=TRUE)

> mean(totalads$Sales, [Link]=TRUE)


[1] 66.81944
What is the average sales value using paper advertisement?
> PaperAdSales = subset(totalads, Ad== "paper")
> mean(PaperAdSales$Sales, [Link] = TRUE)
[1] 73.22222

What is the standard deviation of sales when radio advertisement was used?

> sd(RadioAdSale$Sales)
[1] 12.9676

Test the hypothesis that all means are equal. What conclusions can you reach? Use the aov()
function.

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