1. Presenting Two-Factor Machine in a Cartesian System Ted Mitchell

2. There are TWO different formats For presenting the elements in a Two-Factor Model of a Marketing Machine as graph in a Cartesian System of Coordinates 1) Presentation as a Factor Focused Graph 2) Presentation as a Slope-Origin Graph using an Input-Output Focus

3. #4 Presentation Method Using a Factor Focused graph in a Cartesian System

4. The Key characteristics are 1) the rate of conversion, r, is the variable scaled on the Y-axis 2) The amount of the Input, I, is scaled on the X-axis 3) The amount of Output, O, the machine generates is the area encompassed by the input, I, and the conversion rate, r. O = r x I

5. The Factor-Focused Presentation Using Cartesian System Input Factor on the X-axis Conversion Rate Factor on the Y-Axis 0, 0 Amount of Input, I conversion rate, r o Observed point (I, r) Area is the Machine’s Output = I x r

6. The Factor-Focused Presentation Using Cartesian System Input Factor on the X-axis Conversion Rate Factor on the Y-Axis 0, 0 20 Servers, 150 cups sold per server X Observed point (20, 150) Area is the Observed Output = 150 x 20 = 3,000 cups sold Area is the Observed Output = 150 x 20 = 3,000 cups sold

7. The Factor Focused presentation Is very Useful for the Diagnostic Analysis of the Changes or of the Differences between two performances.

8. #5 Presentation as a Slope-Origin Graph in a Cartesian System of Coordinates with a Focus on Input and Outputs Ted Mitchell

9. 5) Presentation as a Slope-Origin Graph X-axis 0, 0 X Y-axis o Observed point P = (x, y) Y Slope of Line Y/X Slope of Line Y/X Origin 0, 0

10. 5) Presentation as a Slope-Origin Graph Input on the X- axis 0, 0 Input, I Y-axis o Observed Point, P = (I, O) Output, O Slope of Line, r = O/I is the conversion rate

11. #5 The Input-Output as A Slope-Origin Equation Input Factor Output 0, 0 20 Servers 3,000 cups sold X Observed point P = (20, 3,000) Conversion rate slope r = 3,000/20 = 150 cups per server Conversion rate slope r = 3,000/20 = 150 cups per server Slope-Point Equation for Two-Factor machine 3,000 cups = r x 20 cups Slope-Point Equation for Two-Factor machine 3,000 cups = r x 20 cups

12. The Slope-Origin Presentation Is very useful for presenting the forecast from a single calibrated performance in which there is a proposed change in an input for calibrated level of the conversion rate.