Critique of FY 1984 Advertising Mix Test of Wharton Center for Applied Research.

Mathematical and statistical theory together with data analysis of the Wharton Center for Applied Research(WCAR) Final Report on the FY 1984 Advertising Mix Test shows that: (1) The conclusions with respect to budgetary amounts and proportions in the WCAR report are not supported by the evidence. (2) The models and analyses utilized by WCAR are not correct and tend to be misleading. (3) Serious questions are present with respect to the data and design. It is concluded that no reliance should be placed on the WCAR Report and, in particular, reliance should not be placed on any of the budgetary recommendations made with respect to advertising in this report. Keywords: Advertising Policy Evaluation; Interactive Statistical Models; Significance Tests; and Economic Isoquant Theory.