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The Kroger Company is one of the largest grocery retailers in the United States, with over 2000 grocery stores across the country. Kroger uses an online customer opinion questionnaire to obtain performance data about its products and services and learn about what motivates its customers (Kroger website. April 2012). In the survey, Kroger customers were asked if they would be willing to pay more for products that had each of the following four characteristics. The four questions were: Would you pay more for products that have a brand name? products that are environmentally friendly? products that are organic? products that have been recommended by others ? For each question, the customers had the option of responding Yes if they would pay more or No if they would not pay more. a. Are the data collected by Kroger in this example categorical or quantitative? b. What measurement scale is used?

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STATISTICS F/BUSINESS+ECONOMICS-TE...

13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884
BuyFind

STATISTICS F/BUSINESS+ECONOMICS-TE...

13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884

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Chapter
Section
Chapter 1, Problem 7SE
Textbook Problem
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The Kroger Company is one of the largest grocery retailers in the United States, with over 2000 grocery stores across the country. Kroger uses an online customer opinion questionnaire to obtain performance data about its products and services and learn about what motivates its customers (Kroger website. April 2012). In the survey, Kroger customers were asked if they would be willing to pay more for products that had each of the following four characteristics. The four questions were: Would you pay more for

products that have a brand name?

products that are environmentally friendly?

products that are organic?

products that have been recommended by others ?

For each question, the customers had the option of responding Yes if they would pay more or No if they would not pay more.

  1. a. Are the data collected by Kroger in this example categorical or quantitative?
  2. b. What measurement scale is used?

Expert Solution

a.

To determine

Find if the collected data are categorical or quantitative.

Explanation of Solution

The given information is that the Kroger Companyhas 2,000 grocery stores, and they are taking the customers’ opinion for the performance data about the products and services. The survey is based on whether the respondents would wish to pay more for their products due to the four given characteristics (questions). The response to each of the four questions is either yes or no.

Categorical variable:

Labels or names that are used to recognize the attributes of each element are called categorical data...

Expert Solution

b.

To determine

Identify the type of measurement scale used for the data.

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