Alternative plans for assessing customer demand


1. A local cable TV company, with customers in 15 towns is considering offering high-speed Internet service on its cable lines. Before launching the new service they want to find out whether customers would pay the extra $50 per month they plan to charge. An intern has prepared several alternative plans for assessing customer demand. For each, indicate what kind of sampling strategy is used.

a) Randomly select 20 customers from each town. survey these customers and combine the results into one sample.

b) Randomly select one of the towns and contact every cable subscriber in this town.

2. A consumer group wants to test a new brand of laundry detergent. They take pieces of white cloth and stain each with the same amount of grease. The cloths are washed in one of three water temperatures ( cold, warm, hot) using either a standard detergent or the new detergent. An optical scanner is used to measure the whiteness of the cloth ( on a scale 1-10) after washing.

a) Identify the response variable for this experiment:

b) Identify the factors:

c) How many treatments are there?

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Basic Statistics: Alternative plans for assessing customer demand
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