Advantages of the Factorial Design Essay Example

variable and control for a blocking effect, a two-treatment factorial design focuses on the effects of both variables. Because the randomized block design contains only one measure for each (treatment-block) combination, interaction cannot be analyzed In randomized block designs. Many applications of the factorial design are possible in business research. For example, the natural gas industry can design an experiment to study usage rates and how they are affected by temperature and precipitation.

Theorizing that the outside temperature and type of precipitation make a difference in natural gas usage, industry researchers can gather usage measurements for a given community over a variety of temperature and precipitation conditions. At the same time, they can make an effort to determine whether certain types of precipitation, combined with certain temperature levels, affect usage rates differently than other combinations of enrapture and precipitation (interaction effects).

Stock market analysts can select a company from an Industry such as the construction Industry and observe the behavior of Its stock under different conditions. A factorial design can be set up by using volume of the stock market and prime Interest rate as two Independent variables. For volume of the market, business researchers can select some days when day before, and some other days when the volume is essentially the same as on the preceding day.