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gustavjung
Level III

How to analyse factorial design with an outcome having two types of variance?

Hello

 

I have a dataset from a 2-level factorial design with 2 factors.

The dataset contains purchase amount per each user.

Each row is a unique user. Purchase with 0 value means user didn't purchase. A and B are treatments.

 

gustavjung_0-1617821120759.png

 

I want to calculate the effect of treatments A and B on  average purchase per user (sum of purchase in USD divided by number of users).

 

However, I assume we need to account for two types of variance.

First – the variance of the purchase rate, that is, did the user order or not. Second – the variance in average purchase value. 

Can you suggest the appropriate method to do such an analysis in JMP?

 

I have attached the dataset.

 

 

Learning DOE
2 REPLIES 2

Re: How to analyse factorial design with an outcome having two types of variance?

You only have 265 purchases out of 15,771 observations. OLS regression is inappropriate in this case. It fails miserably and the model assumptions are grossly violated. I transformed the purchase amount to a binary response Purchased = { no, yes } and then modeled it with logistic regression. The diagnostics look bad. The model never predicted Purchased = yes. I tried Poisson log-linear model and it worked, but demonstrated very little evidence for an effect of A or B.

 

I attached your data table with my additions.

gustavjung
Level III

Re: How to analyse factorial design with an outcome having two types of variance?

Thank you very much! 

I do understand that we can use logistic regression for binomial data. But what if we had a positive effect of A or B on purchased (Yes, No) and the outcome of interest was an average purchase amount per user. This outcome is different because this is a product of binary metric (Yes, No) and an average purchased amount of orders (with purchased = yes). We can have more success purchases, but low  average purchased amount of orders, as a result we will get lower average purchase amount per user. In OFAT tests for this outcome we can use non-parametric Mann-Whitney U Test. But what about cases whet we want to do a regression analysis?

Learning DOE