Economics Cardio Good Fitness Case Study Questions

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Economics

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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)? 

Unformatted Attachment Preview

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 Single Partnered Partnered Partnered Single Single Partnered Single Partnered Partnered Partnered Partnered Partnered Single Partnered Partnered Single 3 3 4 3 3 2 4 4 3 2 2 3 4 2 3 4 2 4 3 3 4 3 3 2 2 3 4 3 4 3 3 3 4 3 3 2 3 3 5 2 2 3 3 3 4 3 3 3 3 3 3 3 2 3 4 3 2 2 4 3 2 3 5 2 3 3 3 3 3 3 3 3 3 4 3 3 3 4 2 3 3 3 3 3 3 4 2 2 3 3 3 3 2 2 52302 54576 54576 51165 68220 46617 50028 46617 54576 54576 45480 46617 52302 55713 46617 51165 52302 48891 60261 67083 44343 37521 46617 54576 52302 56850 59124 61398 54576 53439 57987 60261 56850 64809 31836 32973 34110 38658 34110 34110 32973 36384 38658 45480 45480 43206 40932 103 94 113 56 85 38 94 141 85 47 47 113 85 38 85 169 66 85 94 85 94 85 75 56 56 75 132 66 103 66 75 47 94 66 64 53 106 95 212 42 53 95 85 95 127 74 53 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 TM498 23 24 24 24 25 25 25 25 25 25 25 25 25 25 25 26 26 26 27 29 30 30 31 31 31 32 32 33 33 33 33 33 34 34 34 35 35 35 35 37 38 38 40 40 40 45 48 Male Female Male Female Female Female Male Female Male Female Male Male Male Female Male Female Female Male Male Female Female Female Male Female Female Male Male Male Female Male Female Female Female Male Male Female Male Female Male Female Female Male Female Female Male Male Male 16 14 14 16 14 14 16 14 14 14 14 14 16 14 14 16 16 16 14 14 14 13 16 16 18 16 16 13 16 16 16 18 16 16 15 14 16 16 16 16 16 16 16 16 16 16 16 Partnered Single Single Single Partnered Single Partnered Partnered Single Single Partnered Partnered Partnered Single Single Partnered Single Single Single Partnered Single Single Partnered Partnered Single Single Partnered Partnered Partnered Partnered Partnered Single Partnered Partnered Single Partnered Partnered Single Partnered Partnered Partnered Partnered Partnered Single Partnered Partnered Partnered 3 3 3 3 2 3 2 5 3 2 4 3 2 2 4 4 4 4 4 3 3 4 3 2 2 4 3 4 2 3 5 3 4 3 3 3 3 3 3 2 4 3 3 3 3 2 2 3 2 4 3 3 4 2 3 3 3 3 4 3 2 3 3 4 3 2 3 3 3 3 3 1 3 3 4 3 3 3 4 3 4 3 2 2 2 3 3 3 3 3 3 3 2 3 45480 40932 48891 50028 45480 43206 52302 47754 45480 43206 45480 43206 50028 45480 48891 45480 50028 51165 45480 51165 57987 46617 52302 51165 65220 60261 53439 53439 50028 51165 53439 47754 64809 59124 67083 52302 53439 50028 53439 48891 62535 59124 61398 57987 64809 54576 57987 64 85 106 106 85 127 42 106 95 64 170 106 53 42 127 85 127 106 53 95 74 106 95 64 21 127 95 170 85 95 95 74 95 85 85 53 53 64 95 85 85 106 85 85 95 42 64 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 TM798 22 22 22 23 23 23 24 24 24 24 25 25 25 25 25 25 25 26 26 27 27 27 28 28 28 29 29 30 30 30 31 33 34 35 38 40 42 45 47 48 Male Male Male Male Female Male Male Male Female Male Male Male Female Male Male Male Male Female Male Male Male Male Female Male Male Male Male Female Male Male Male Female Male Male Male Male Male Male Male Male 14 16 18 16 18 16 16 18 16 16 16 16 18 18 18 18 20 21 16 16 18 21 18 18 18 18 14 16 18 18 16 18 16 16 18 21 18 16 18 18 Single Single Single Single Single Single Single Partnered Single Single Partnered Partnered Partnered Partnered Partnered Partnered Partnered Single Partnered Partnered Single Partnered Partnered Partnered Single Single Partnered Partnered Partnered Partnered Partnered Partnered Single Partnered Partnered Single Single Single Partnered Partnered 4 3 4 4 5 4 4 4 5 5 4 4 5 4 6 6 4 4 5 4 4 4 6 7 6 5 7 6 5 5 6 4 5 4 5 6 5 5 4 4 3 5 5 5 4 5 5 5 5 5 5 4 5 3 4 5 5 3 4 5 3 4 5 5 5 5 5 5 4 5 5 5 5 5 5 5 4 5 5 5 48658 54781 48556 58516 53536 48556 61006 57271 52291 49801 49801 62251 61006 64741 70966 75946 74701 69721 64741 83416 88396 90886 92131 77191 88396 52290 85906 90886 103336 99601 89641 95866 92131 92131 104581 83416 89641 90886 104581 95508 106 120 200 140 100 100 100 80 200 160 120 160 200 100 180 240 170 100 180 160 100 100 180 180 150 180 300 280 160 150 260 200 150 360 150 200 200 160 120 180
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3 Questions
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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...


Anonymous
Very useful material for studying!

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