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LSU MKT 3413 - Practice Problems

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Case 9.2N X1 200002 100003 50004 25005 10006 500Sample Error = Standard Deviation/NN X X-XBar (X-XBar)^2 (X-XBar)^2)/NStandard DeviationSample Error1.0 20000.0 13500.0 182250000.030375000.0 5511.4 918.62.0 10000.0 3500.0 12250000.0 2041666.7 1428.9 238.13.0 5000.0 -1500.0 2250000.0 375000.0 612.4 102.14.0 2500.0 -4000.0 16000000.0 2666666.7 1633.0 272.25.0 1000.0 -5500.0 30250000.0 5041666.7 2245.4 374.26.0 500.0 -6000.0 36000000.0 6000000.0 2449.5 408.2X bar 6500Expected cost is X bar which is sum of X divided by total sample sizeExpected cost is 6500Case11.21. What is the demographic composition of the sample?The hometown size is sizeable with about 10 percent of the population coming back home on major holidays. The dominant gender in the town is female and with respect to marital status, half the people are married and have a family. Most households have two children; either young of middle-school going age or old of college-going age. The town has many adults aged 35 to 55; with two thirds of them having blue collar jobs. The income category is defined by a middle class of size –adjusted household incomes ofbetween $30,000 and $ 100,000 for families of two. Being that this is the Gulf Coast, a majority of the dwelling type is defined by the creole cottage. Respective of a survey conducted, people strongly agree that global warming is a real threat and we need to do something about global warming; only that they proposed the use of alternative fuel as opposed to the adaptation of electric vehicles. 2. What is the automobile ownership profile of respondents in the survey?With respect to the automobile ownership profile of respondents in the survey, the primary vehicle type for families with old cars is the station wagon (usually a Ford or a Volvo). For families with new vehicles sedans and few SUVs define the population. A typical sedan that is preferred goes for approximately $ 5000 while a decent SUV common in the population is in the range of $10,000. Most families go with sedans to work; for families that own SUVs and station wagons the cars are mostly used duringweekends. It is worth mentioning that 50 percent of the town’s residents use public means of transport such as trains and buses. As with respect to attitudes, a majority of Americans very strongly agree that they use too much gasoline but they propose no solutions. 3. How do respondents feel about (1) global warming and (2) the use of gasoline?As above mentioned, the respondents strongly agree that global warming is a real threat and something needs to be done about it. In addition to that, they feel that gasoline should be replaced with much “greener” fuels. The respondents mentioned that greener fuels would be much cheaper and would makeit easier for them to maintain their vehicles. It also occurred that the respondents did not go for electric vehicles because they were expensive and were characterized by the inconvenience of having to charge them at the otherwise limited charge stations. 4. What are the respondents ‘opinions about the effects of the use of various kinds of hybrid vehicles?A majority of the respondents agreed that hybrid autos that use alternative fuels will slow global warming. Today the respondents feel that hybrid vehicles use too much fuel despite the fact that people find them attractive. Being that such vehicles are expensive and use little fuel, the respondents admitted to buying them solely because of their looks and performance. 5. What size of “new” automobile (very small with very high mpg, small with high mpg, and hybrid using alternative fuels) do people in the sample believe are likely to have the most positive effects?With respect to convenience and efficiency, people in the sample feel that very small automobiles with very high mpg have the most positive effects. Some respondents further added that for a small automobile, gasoline worth a hundred dollars goes a long way unlike what the same worth of fuel would do for a hybrid Sports Utility Vehicle. Given the challenging economic times middle class Americans who define a majority of the population are more likely to prefer smaller cars given that they are cheap to maintain and make use of very limited fuel.6. What type of hybrid automobile is the most attractive to people in the sample in terms of likelihood ofpurchase in the next three years? What type is the least attractive?With respect to the likelihood of purchase in the next three years, the type of hybrid automobile that is most attractive to people is the economy four-seat; 70 mpg city, 100 mpg highway. This is because the vehicle has proven to be efficient in terms of fuel consumption and maintenance costs. The four-seat aspect is also suitable to the typical size of most American families. CASE 12.2 1. What percent of the American public owns the following type of vehicle?a) Standard vehicleb) Luxury vehicle. SUV or vanA third of the American public (33.3% of the population) owns a luxury vehicle ie a Sports Utility Vehicle or van. On the other hand two thirds (66.7%) of the American population own a standard vehicle. Most of the households that own standard vehicles are looking to ‘graduate’ and purchase a luxury vehicle; especially a Sports Utility Vehicle. The reason why these households want to purchase SUVs is because ofthe convenience that comes with the capacity of the vehicle. Other households however would want to purchase such vehicles because they want to keep up with the Joneses and desire to make a statement.2.How does the American public feel about the following statements?a) Hybrid autos that use alternative fuels will reducefuel emissions.The American public very strongly agrees that alternative fuels provide a much greener option for them and thiu the release of CFC s into the atmosphere. These fuels will also be easy on the engine ie cleaner engines and will make it easier to maintain, b) Hybrid autos that use alternative fuels will keep gas prices down.Being that alternative fuels will be sourced from the environment just like biogas, Americans very strongly agree their prices will be cheaper and availability will not present a challenge. c) Hybrid autos that use alternative fuels will slowglobal warming.The American public very strongly agrees that the alternative fuels will slow down global warming; this isbecause the fuels do not release a lot of CFCs upon combustion. 3.Principals at Advanced Automobile Concepts fully


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