The manager of a business wanted to determine whether where he advertised made any difference. Each week he advertised several times per week, but in only one type of advertising media. He recorded the weekly number of customers, the number of ads, and the location of that week's advertisement (1= newspaper, 2= radio, 3= television). The data is listed below. Which of the following is INCORRECT?
A) There is sufficient evidence to infer that advertising by radio attracts more customers than advertising by television
B) There is overwhelming evidence to infer that advertising affects the weekly number of customers
C) Only two indicator variables are needed
D) There is sufficient evidence to infer that advertising by newspaper and advertising by television attract a different amount of customers
| Customer | Ads | Media |
| 311 | 1 | 1 |
| 416 | 7 | 2 |
| 302 | 4 | 1 |
| 314 | 4 | 1 |
| 258 | 2 | 3 |
| 321 | 4 | 1 |
| 282 | 3 | 1 |
| 329 | 5 | 1 |
| 441 | 3 | 3 |
| 415 | 5 | 3 |
| 425 | 4 | 2 |
| 348 | 3 | 1 |
| 393 | 4 | 1 |
| 307 | 2 | 1 |
| 400 | 2 | 1 |
| 319 | 3 | 1 |
| 355 | 3 | 2 |
| 480 | 9 | 2 |
| 352 | 2 | 1 |
| 380 | 5 | 3 |
| 388 | 3 | 2 |
| 337 | 3 | 3 |
| 360 | 4 | 1 |
| 406 | 3 | 1 |
| 244 | 2 | 2 |
| 453 | 4 | 3 |
| 280 | 3 | 1 |
| 330 | 3 | 3 |
| 376 | 4 | 3 |
| 312 | 3 | 3 |
| 385 | 7 | 2 |
| 381 | 6 | 2 |
| 202 | 2 | 2 |
| 297 | 2 | 1 |
| 317 | 3 | 2 |
| 246 | 1 | 2 |
| 325 | 2 | 1 |
| 338 | 2 | 3 |
| 363 | 2 | 3 |
| 396 | 4 | 1 |
| 239 | 1 | 2 |
| 356 | 3 | 1 |
| 349 | 4 | 2 |
| 276 | 1 | 3 |
| 331 | 2 | 2 |
| 404 | 3 | 3 |
| 250 | 3 | 2 |
| 321 | 2 | 2 |
| 363 | 4 | 1 |
| 308 | 4 | 2 |
| 226 | 1 | 2 |
| 323 | 3 | 1 |
Solution:-
Given data:-
As per given information,
1= newspaper
2= radio
3= television
In order to solve this problem we need more than 2 indicator variables.
In the given options, option c is incorrect.
So, the answer is Option C.
The manager of a business wanted to determine whether where he advertised made any difference. Each week he advertised several times per week, but in only one type of advertising media. He recorded th...