Consider the Following to Answer the Question(s) Below

question 9

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.
-A consumer research group is interested in how older drivers view hybrid cars. Specifically, they wish to assess the percentage of drivers in Canada, 50 years of age or older who intend to purchase a hybrid in the next two years. Suppose that a list of CARP (Canadian Association of Retired Persons) members is used as the sampling frame. Based on a systematic sample, they estimated the percentage to be 17%.
a. Define the target population.
b. Define the parameter.
c. What is the statistic?
d. How might the results be biased?

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service; typically used to determine optimal production levels.

Marginal Cost

The expense incurred from manufacturing an extra unit of a good or service.

Profit Increase

The rise in the difference between a company's revenue and its expenses.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to market changes fully.