[Questions 27-28] Determine how various attributes impact the purchase of a car. There are four attributes, each with three levels. • Brand: Ford = 0, Chrysler = 1, GM = 2 • MPG: 15 MPG = 0, 20 MPG = 1,25 MPG = 2 • Horsepower (HP): 100 HP = 0, 150 HP = 1, 200 HP = 2 • Price: $18,000 = 0, $21,000= 1, $24,000 = 2 The nine product profiles ranked below were evaluated by a consumer: (note - the table should be reproduced using the dummy variables) (F, C, GM) Brand (15, 20, 25) MPG (100,150, 200) (18000, 21000, 24000) Power Trial Price Rank 1 0 0 0 0 4 2 0 1 1 2 7 3 0 2 2 1 3 4 1 0 1 1 6 5 1 1 2 0 2 6 1 2 0 2 9 7 2 0 2 2 8 8 2 1 0 1 5 9 2 2 1 0 1 Q28. Consider a car currently getting 15 MPG selling for $18,000. If you could increase MPG by 1 mile, how much could you increase the price of the car and keep the car just attractive to this market segment? O $166.57 O $176.47 O $177.78
[Questions 27-28] Determine how various attributes impact the purchase of a car. There are four attributes, each with three levels. • Brand: Ford = 0, Chrysler = 1, GM = 2 • MPG: 15 MPG = 0, 20 MPG = 1,25 MPG = 2 • Horsepower (HP): 100 HP = 0, 150 HP = 1, 200 HP = 2 • Price: $18,000 = 0, $21,000= 1, $24,000 = 2 The nine product profiles ranked below were evaluated by a consumer: (note - the table should be reproduced using the dummy variables) (F, C, GM) Brand (15, 20, 25) MPG (100,150, 200) (18000, 21000, 24000) Power Trial Price Rank 1 0 0 0 0 4 2 0 1 1 2 7 3 0 2 2 1 3 4 1 0 1 1 6 5 1 1 2 0 2 6 1 2 0 2 9 7 2 0 2 2 8 8 2 1 0 1 5 9 2 2 1 0 1 Q28. Consider a car currently getting 15 MPG selling for $18,000. If you could increase MPG by 1 mile, how much could you increase the price of the car and keep the car just attractive to this market segment? O $166.57 O $176.47 O $177.78
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter12: More Realistic And Complex Pricing
Section: Chapter Questions
Problem 12.4IP
Related questions
Question
![Question 28
[Questions 27~ 28]
Determine how various attributes impact the purchase of a car. There are four attributes, each with three levels.
• Brand: Ford = 0, Chrysler = 1, GM = 2
• MPG: 15 MPG = 0, 20 MPG = 1, 25 MPG = 2
Horsepower (HP): 100 HP = 0, 150 HP = 1, 200 HP = 2
• Price: $18,000 = 0, $21,000 = 1, $24,000 = 2
The nine product profiles ranked below were evaluated by a consumer: (note - the table should be reproduced using the dummy variables)
(F,C, GM)
(15, 20, 25)
(100,150, 200) (18000, 21000, 24000)
Trial
Brand
MPG
Pow er
Price
Rank
1
4
2.
1
1
2
3
2
1
3
1
1
1
6
5
1
1
2
2
6
1
2
2
7
2
2
2
8
8
1
2
2
Q28. Consider a car currently getting 15 MPG selling for $18,000. If you could increase MPG by 1 mile, how much could you increase the price of the car and keep the car just as
attractive to this market segment?
O $166.57
O $176.47
$177.78
O $186.57](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F835f655a-decb-4a82-9ccc-6fd2a4f19f12%2F26d0e50b-e7c8-455c-9c59-d40932013328%2Fow3lraq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 28
[Questions 27~ 28]
Determine how various attributes impact the purchase of a car. There are four attributes, each with three levels.
• Brand: Ford = 0, Chrysler = 1, GM = 2
• MPG: 15 MPG = 0, 20 MPG = 1, 25 MPG = 2
Horsepower (HP): 100 HP = 0, 150 HP = 1, 200 HP = 2
• Price: $18,000 = 0, $21,000 = 1, $24,000 = 2
The nine product profiles ranked below were evaluated by a consumer: (note - the table should be reproduced using the dummy variables)
(F,C, GM)
(15, 20, 25)
(100,150, 200) (18000, 21000, 24000)
Trial
Brand
MPG
Pow er
Price
Rank
1
4
2.
1
1
2
3
2
1
3
1
1
1
6
5
1
1
2
2
6
1
2
2
7
2
2
2
8
8
1
2
2
Q28. Consider a car currently getting 15 MPG selling for $18,000. If you could increase MPG by 1 mile, how much could you increase the price of the car and keep the car just as
attractive to this market segment?
O $166.57
O $176.47
$177.78
O $186.57
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
