Description
Case Study: CardioGood Fitness {Basic Business Statistics, 14th Ed.}
CardioGood Fitness is a developer of high-quality cardiovascular exercise equipment. Its products include treadmills, fitness bikes, elliptical machines, and e-glides. CardioGood is looking to increase the sales of its treadmill products and has hired The AdRight Agency to create and implement an advertising program. The agency plans on identifying particular market segments that are most likely to buy CardioGood's products then locating advertising outlets to reach those market groups. Part of this process involves collecting data on sales and the customers buying CardioGood's equipment. If a customer profile is identified, the agency can then advertise directly to these clients.
CardioFitness sells three lines of treadmills: TM195 (entry-level), TM498 (mid-level), and TM798 (high end). Eventually the agency hopes to identify whether the customer profile differs across these three products. To do so they compiled a dataset of both business transactional data and the results of a personal profile survey that every purchaser completes.
The agency team identified the following variables:
- Product Purchased
- Gender
- Age
- Education (in years)
- Relationship Status
- Annual Household Income ($)
- Average number of times a customer plans to use the treadmill per week
- Average number of miles the customer expects to walk/run per week
- Self rated fitness (1 (poor) to 5 (excellent))
The results are stored in CardioGoodFitness file from the Excel Data Workbooks ZIP file.
1. At the 0.05 significance level, is there evidence that there is a difference in variability in household income between male and female clients? State the appropriate hypotheses, your test statistic, critical values, p-value, and conclusion.
2. At this point in the firm's analysis, they are interested in determining whether there is a difference in male and female clients for the following variables:
- Income
- Average treadmill uses per week
- Average miles per week
Make sure to state the type of test you are conducting, the appropriate hypotheses, your test statistic, critical values, p-value, and conclusion for each test.
3. Why might it be beneficial for the advertising agency to conduct the tests in (2)?
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Explanation & Answer
Attached.
Product Age Gender Education Marital Status Usage Fitness
TM195
18 Male
14 Single
3
4
TM195
19 Male
15 Single
2
3
TM195
19 Female
14 Partnered
4
3
TM195
19 Male
12 Single
3
3
TM195
20 Male
13 Partnered
4
2
TM195
20 Female
14 Partnered
3
3
TM195
21 Female
14 Partnered
3
3
TM195
21 Male
13 Single
3
3
TM195
21 Male
15 Single
5
4
TM195
21 Female
15 Partnered
2
3
TM195
22 Male
14 Single
3
3
TM195
22 Female
14 Partnered
3
2
TM195
22 Female
16 Single
4
3
TM195
22 Female
14 Single
3
3
TM195
23 Male
16 Partnered
3
1
TM195
23 Male
16 Partnered
3
3
TM195
23 Female
14 Single
2
3
TM195
23 Male
16 Partnered
4
3
TM195
23 Female
16 Single
4
3
TM195
23 Female
15 Partnered
2
2
TM195
23 Male
14 Single
4
3
TM195
23 Male
16 Single
4
3
TM195
24 Female
16 Single
4
3
TM195
24 Female
16 Partnered
5
5
TM195
24 Male
14 Single
2
3
TM195
24 Male
13 Partnered
3
2
TM195
24 Female
16 Single
4
3
TM195
25 Female
14 Partnered
3
3
TM195
25 Male
14 Partnered
2
3
TM195
25 Female
14 Partnered
2
2
TM195
25 Female
14 Partnered
3
3
TM195
25 Male
16 Single
3
4
TM195
25 Female
16 Partnered
2
2
TM195
25 Male
16 Single
3
3
TM195
26 Female
14 Partnered
3
4
TM195
26 Female
16 Partnered
4
3
TM195
26 Male
16 Partnered
2
2
TM195
26 Male
16 Partnered
3
3
TM195
26 Female
16 Single
3
3
TM195
26 Male
16 Partnered
4
4
TM195
26 Male
16 Single
3
3
TM195
27 Female
14 Partnered
3
2
TM195
27 Male
16 Single
4
3
TM195
27 Female
14 Partnered
2
3
TM195
28 Female
14 Partnered
2
3
TM195
28 Female
16 Partnered
2
3
Income
Miles
29562
112
31836
75
30699
66
32973
85
35247
47
32973
66
35247
75
32973
85
35247
141
37521
85
36384
85
35247
66
36384
75
35247
75
38658
47
40932
75
34110
103
39795
94
38658
113
34110
38
38658
113
40932
94
42069
94
44343
188
45480
113
42069
47
46617
75
48891
75
45480
56
53439
47
39795
85
40932
113
40932
47
43206
85
44343
113
52302
113
53439
47
51165
85
36384
66
44343
132
50028
85
45480
66
54576
85
45480
56
46617
56
52302
66
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM195
TM498
TM498
TM498
TM498
TM498
TM498
TM498
TM498
TM498
TM498
TM498
TM498
TM498
28
28
28
28
29
29
29
30
30
31
31
32
32
33
33
34
34
35
35
35
36
37
38
38
38
38
39
40
41
43
44
46
47
50
19
20
20
20
21
21
21
23
23
23
23
23
23
Male
Female
Male
Female
Male
Female
Female
Male
Male
Male
Female
Female
Male
Female
Female
Male
Female
Male
Female
Female
Male
Female
Male
Female
Male
Male
Male
Male
Male
Male
Female
Female
Male
Female
Male
Male
Female
Male
Female
Male
Male
Male
Male
Female
Male
Female
Female
14
14
14
16
18
14
16
14
14
14
14
14
14
16
16
16
16
16
16
18
12
16
16
14
14
16
16
16
16
16
16
16
16
16
14
14
14
14
14
16
12
14
14
16
16
16
14
Single
Partnered
Single
Partnered
Partnered
Partnered
Partnered
Partnered
Single
Partnered
Single
Single
Partnered
Single
Partnered
Single
Single
Partnered
Partnered
Single
Single
Partnered
Partnered
Partnered
Single
Partnered
Partnered
Partnered
Partnered
Partnered
Sin...