Robert Amos is the marketing manager for TeleOptics Inc. TeleOptics offers a system that greatly enhances the viewing experience of home theaters by altering audio and video signals and creating ambient lighting. Because TeleOptics is a new product, Robert is considering offering a single package or a "Basic" package with several options at additional prices. He examines survey data that was conducted during the concept stage of product development. One research question asked owners of home theaters what they would be willing to pay for this enhancement system. Robert looked at the mean and standard deviations. Which one of the following sets of means and standard deviations would indicate that Robert should offer the "Basic" package and several options at additional cost?
A) $75; 1.98
B) $100; .88
C) $95; 30.2
D) $88; .05
E) $101; 2.1

Question

Quizplus · Accepted Answer

A high standard deviation (30.2) indicates a wide range of willingness to pay, suggesting varied preferences among consumers. This supports offering a "Basic" package with additional options to cater to different willingness to pay.

Robert Amos Is the Marketing Manager for TeleOptics Inc