Consider the Following to Answer the Question(s) Below

question 20

Essay

Consider the following to answer the question(s) below:
The option to buy extended warranties is commonplace with most electronics purchases. Does the type of purchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table.
-ASW, a regional shoe chain, has recently launched an online store. Sales via the Internet have been sluggish compared to their brick and mortar stores, and management suspects that its regular customers have concerns regarding the security of online transactions. To determine if this is the case, they plan to survey a random sample of their regular customers. Under consideration are several plans for selecting the sample. Name the sampling strategy for each.
a. Regular customers belong to a rewards program and have a customer rewards ID number. Randomly select 100 numbers.
b. ASW has stores in five different cities in Canada. Randomly select one of the stores and survey all regular customers that belong to its rewards program.
c. ASW has an alphabetized list of regular customers who belong to their rewards program. After randomly selecting a customer on the list, every 25th customer from that point on is chosen to be in the sample.
d. Customers who belong to the rewards program are grouped into four age categories (under 21, 21 to 35, 36 to 50, and over 50). Randomly select 10 regular customers in each age category.

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Definitions:

Price Elasticity

A calculation of the extent to which the desired quantity of a good changes following a price modification.

Beef Sandwiches

A food item consisting of slices of beef placed between slices of bread or within a bun.

Elasticity

An economic measure of how responsive the quantity demanded or supplied of a good or service is to a change in price.

Demand Curve

A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.