Banning controversial sports team sponsors. Refer to the Journal of Marketing Research (October…

Banning controversial sports team sponsors. Refer to the Journal of Marketing Research (October 2015) study of the impact of banning a controversial sponsor on a sports team’s success, Exercise 12.81 (p. 762). Recall that markets for English soccer clubs were classified as one of four types: (1) banned alcohol sponsors but now have other sponsors, (2) banned alcohol sponsors and now have no other sponsors, (3) did not ban alcohol sponsors but now have other sponsors, and (4) did not ban alcohol sponsors and now have no other sponsors. To assess the impact of an alcohol ban in a market, you fit a main effects model for the matching value loss 1y2 as a function of the qualitative independent variable market type. Conduct a complete residual analysis for the multiple regression model. Are the standard regression assumptions reasonably satisfied?
Exercise 12.81
Banning controversial sports team sponsors. Refer to the Journal of Marketing Research (October 2015) study of the impact of banning a controversial sponsor on a sports team’s success, Exercise 9.34 (p. 550). Recall that markets for English soccer clubs were classified as one of four types: (1) banned alcohol sponsors but now have other sponsors, (2) banned alcohol sponsors and now have no other sponsors, (3) did not ban alcohol sponsors but now have other sponsors, and (4) did not ban alcohol sponsors and now have no other sponsors. To assess the impact of an alcohol ban in a market, the researchers computed the  matching value loss (MVL) for each market and treated this as the dependent variable in the analysis. The data (simulated from information provided in the study) are saved in the  file. Consider a model for mean MVL as  a  function of the qualitative independent variable, market type.
a. Give the equation of the model for E(MVL). Use market type “no ban/no other” as the base level for the qualitative independent variable.
b. Fit the model, part a, to the data. Give the least squares prediction equation.
c. Provide a practical interpretation of each of the estimated b’s in the model.
d. Conduct the global F-test for the model using a = .05. What inference can you make about the mean MVL values for the four markets?
e. The sample mean MVL values for the four markets were 8.52, 8.55, 6.63, and 6.38, respectively. Show how to find these sample means using only the b estimates obtained in part b.
Exercise 9.34
Banning controversial sports team sponsors. Successful marketing of professional sports franchises involves finding sponsors that appeal to the team’s fans. The Journal of Marketing Research (October 2015) published a study that investigated the impact of banning a controversial sponsor (e.g., one that manufactures an alcoholic beverage) on a soccer team’s success. Data were collected for 43 English soccer clubs over a 30-year period, where each club-year represents a market. The clubs were divided into four types: (1) clubs that had banned alcohol sponsors but now have other sponsors, (2) clubs that had banned alcohol sponsors and now have no other sponsors, (3) clubs that did not have banned alcohol sponsors but now have other sponsors, and (4) clubs that did not have banned alcohol sponsors and now have no other sponsors. To assess the impact of an alcohol ban in a market, the researchers computed the matching value loss (MVL), a numerical measure used to estimate the value lost between a club and a sponsor if a ban is implemented. The table below gives summary statistics for the matching value loss for the four club types in 177 markets. The mean matching value losses of the four types were compared using an analysis of variance. Although the ANOVA table was not provided in the article, sufficient information is provided to reconstruct it.
c. Use the results from parts a and b to construct the ANOVA table.
d. Is there sufficient evidence (at
) of differences among the mean market value losses of clubs in the four types?
e. Comment on the validity of the ANOVA assumptions. How might this affect the results of the study?