Question
They did a survey and received 21 respondents. In the survey, the respondents are giving their ratings on 21 profiles, which is the combination of
They did a survey and received 21 respondents. In the survey, the respondents are giving their ratings on 21 profiles, which is the combination of the following three attributes:
- Location: current location (standalone), in a mall, or in a plaza
- Movies to carry: all current movies, some current movies but not all, and current choice ( only current popular movies)
- Size of the theatre: current (small), medium, or large
What is the optimal price of a ticket? From the case, you should see that with an increase of 1$, there will be 10% drop in tickets (and vice versa).To make things simpler, let us assume the popcorn price is 5.50$, and 2/3 ticket holds will buy popcorn.
| Customer | Small theatre / Carries all current movies / In a mall | Medium-sized theatre / Carries all current movies / In a mall | Large theatre / Carries all current movies / In a mall | Small theatre / Carries some current movies, but not all / In a mall | Medium-sized theatre / Carries some current movies, but not all / In a mall | Large theatre / Carries some current movies, but not all / In a mall | Small theatre / Carries only current popular movies / In a mall | Medium-sized theatre / Carries only current popular movies / In a mall | Large theatre / Carries only current popular movies / In a mall | Small theatre / Carries all current movies / Stand-alone location | Medium-sized theatre / Carries all current movies / Stand-alone location | Large theatre / Carries all current movies / Stand-alone location | Small theatre / Carries some current movies, but not all / Stand-alone location | Medium-sized theatre / Carries some current movies, but not all / Stand-alone location | Large theatre / Carries some current movies, but not all / Stand-alone location | Small theatre / Carries only current popular movies / Stand-alone location | Medium-sized theatre / Carries only current popular movies / Stand-alone location | Large theatre / Carries only current popular movies / Stand-alone location | Small theatre / Carries all current movies / In a plaza | Medium-sized theatre / Carries all current movies / In a plaza | Large theatre / Carries all current movies / In a plaza | Small theatre / Carries some current movies, but not all / In a plaza | Medium-sized theatre / Carries some current movies, but not all / In a plaza | Large theatre / Carries some current movies, but not all / In a plaza | Small theatre / Carries only current popular movies / In a plaza | Medium-sized theatre / Carries only current popular movies / In a plaza | Large theatre / Carries only current popular movies / In a plaza |
| 1 | 6 | 10 | 9 | 4 | 6 | 7 | 7 | 8 | 8 | 7 | 7 | 5 | 2 | 4 | 2 | 2 | 4 | 4 | 5 | 8 | 8 | 1 | 8 | 7 | 2 | 4 | 3 |
| 2 | 10 | 10 | 9 | 9 | 8 | 7 | 8 | 8 | 9 | 1 | 1 | 3 | 1 | 1 | 1 | 1 | 2 | 1 | 7 | 7 | 7 | 5 | 6 | 6 | 5 | 7 | 7 |
| 3 | 9 | 8 | 9 | 4 | 4 | 4 | 4 | 4 | 4 | 9 | 8 | 9 | 4 | 4 | 4 | 4 | 4 | 4 | 8 | 8 | 8 | 4 | 4 | 4 | 4 | 4 | 4 |
| 4 | 5 | 8 | 10 | 3 | 4 | 5 | 2 | 8 | 8 | 6 | 6 | 8 | 4 | 7 | 5 | 4 | 4 | 7 | 6 | 7 | 8 | 2 | 3 | 5 | 2 | 3 | 8 |
| 5 | 8 | 8 | 9 | 4 | 5 | 7 | 6 | 8 | 8 | 8 | 7 | 9 | 1 | 3 | 5 | 3 | 7 | 8 | 8 | 10 | 10 | 4 | 4 | 4 | 6 | 6 | 8 |
| 6 | 7 | 9 | 10 | 2 | 6 | 7 |
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To find the optimal price of a ticket we need to estimate the price sensitivity of the customers Bas...
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
