Help answer part 2 only Help answer part 2 only McDonalds wa

McDonald\'s wants to determine the effectiveness of a new price AND advertising program for its Fish Deluxe sandwich. The current price is $ 4.50 with drink and soda. Alternative prices under consideration are $ 5.00 and $ 4.25. The current level of advertising expenditure is $ 4.5 million. The proposed level of advertising spending is $ 6.2 million. Mos Burger has a similar meal currently selling for $ 4.25 What is your recommended experimental design to test which price and advertising expenditure to recommend? (Be specific, a sketch or diagram would be helpful) Indicate the following for the experimental design you recommend Who/what are the experimental inputs? Who/what are the environmental inputs? Who/What are the test people? Who/What are the control people Who/what is the output and how is it measured? What is the null hypothesis tested? Which (statistical) method(s) do you recommend to test your null hypothesis (why)?

Solution

2 a) Cost for avertising and cost for production

b) other company\'s pricing and the demand of the product

c) Test people are the norrmal customers and people who mostly prefer junk food

d) Control people are the customers who are vulenrable to change the brand

e) Output will be the average cost for selling and it will be measured by the amount of profit you get.

f) Null hypothesis is tested when the price is kept $5

g) Stat-trek