Question #1 Isabella Nunez is the marketing manager for Safe Home Inc. Safe Home
ID: 2709806 • Letter: Q
Question
Question #1
Isabella Nunez is the marketing manager for Safe Home Inc. Safe Home Inc. offers a new electronic home security device. Isabella is examining whether she should offer a single package or a basic package with additional options at higher prices. She is looking at data from a survey that was conducted during the concept stage of product development. One research question asked a sample of home owners what they would be willing to pay for this electronic home security device. Assume Isabella gets the following three sets of means and standard deviations (from three separate samples of home owners). Which set of mean and standard deviation would suggest that Isabella should offer the basic package and several options at higher prices? Explain your answer.
M = $425 and SD = 42.2
M = $505 and SD = 15.3
M = $595 and SD = 120.5
Question #2
You are the Director of Membership at a fitness club. You are looking for ways to ensure that members will join again the following year. A good number of members join the club for one year but do not renew their membership. You decide to survey a sample of current members. One of the questions asks the respondents: Do you plan to renew your membership for next year? Yes, No. Another question asks the respondents to check all (“Check All that Apply”) the following features that they feel adds value to their experience in the club: opening hours, trainers, variety of fitness equipment, quality of fitness equipment, fitness classes, indoor parking, lounge area with free wifi, and free towel service. Which central tendency measures and dispersion (variability) measures would you use to describe the findings for these two questions? You would like to know which of these features are related to whether or not current members will renew their membership. What analysis should you run?
Please answer both questions
Explanation / Answer
Ans 1 - M = $505 and SD = 15.3. Because this set of mean and standard deviation is the least variant and is consistent. Least variant means it does not deviate much from the mean, which means the maximum number of homeowners are willing to pay the mean amount.
Ans 2 - We can use the Modal central tendency measure and the frequency distribution measures to describe the findings. I will ascertain weights or values to the features or will let the members rate them on importance.