M3: Sampling and Confidence Intervals

Mini-Case Assignment Scenario

Script Caption:

Mieke, the head of Marketing has heard about you. And at Princess Foods, like much of the rest of the world, the reward for good work is more work.

Mieke: Thank you so much for making time for me. Liwei says that you're a miracle worker...

Caption: Princess Foods Corporation is piloting a new service called "Princess Select," a new premium meal kit service. Subscribers are mailed kits that each contain all the ingredients that a customer would need to make a delicious meal in exactly the right proportions. All the customer needs to do is to follow the provided recipe and a fresh, home-cooked meal is ready in no time. Mieke needs to gauge their interest in this new service and decide whether to market it nationally.

Caption: Mieke has stated that at least 75% of the potential customers must express some desire for the service and, for those who exhibit an interest, the average cost they are willing to pay per two-meal package must be at least $49.00. Mieke insists that you be 95% certain of your findings.

Mieke: Because this is a relatively new service on the market, we need some additional insight into how Princess Select would fit into our customers' lives and what they'd be willing to pay for a service like this. We conducted a survey of 50 potential customers. Can you prepare a memo that includes your findings and recommendations?