A toy company is concerned that its distribution strategy is notworking. Sean Masterson, the marketing manager stated that one ofthe primary goals in the distribution of a particular toy is tokeep the prices similar throughout all their distribution channels.To find out if their strategy is failing, the marketing departmenttook a survey of 5 different outlets in three different channels.The price results are in the following table:
Store | Web sales | Discount stores | Department stores |
1 | 13 | 15 | 16 |
2 | 16 | 17 | 17 |
3 | 14 | 14 | 16 |
4 | 18 | 18 | 17 |
5 | 15 | 17 | 16 |
Using ANOVA, determine if there is a significant difference inprices between the three channels. Mr. Masterson wants to be 90%confident, so list all the steps of the hypothesis test and do thecalculations then write a memorandum to Mr. Masterson stating yourconclusion and backing it up with statistical analysis.
