Jesse Pollard is the marketing director for SNERDLY TV Cable. He is considering offering a DVR service (digital video recording)to his customers and he is not certain what price they are willing to pay. He had a survey conducted and, after respondents were given a detailed description of the proposed DVR service, they were asked what price they were willing to pay for the service. The mean price was $30 a month. Based upon this mean, Jesse should:
A) immediately offer the service for $30 a month
B) examine the standard deviation
C) examine the range
D) examine the frequency and percentage distribution
E) Pollard should actually examine all items covered in B through D before making the decision.

Question

Quizplus · Accepted Answer

Even though the mean price reported by the survey respondents is $30 a month, it is important to examine the standard deviation, range, frequency, and percentage distribution before making a decision. This will give Jesse a more complete picture of the results and help him make an informed decision on pricing the DVR service. Therefore, Pollard should examine all items covered in B through D before making the decision.

Jesse Pollard Is the Marketing Director for SNERDLY TV Cable