Chapter 3 exercise 3. The Chicago Garden Dog is served with a Vienna beef wiener on a poppy-seed roll with sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt. A New York Dirty Water Dog is served with a natural- casing all beef frankfurter on a white-bread roll with sauerkraut, mustard, onions, and tomato relish. A researcher wants to investigate the pricing of a Chicago Garden Dog and a New York Dirty Water Dog. She collects the following rank order information regarding the perceived value of the different attributes of hot dogs, where 1 is most preferred and 8 is least preferred. Dog: Vienna Beef OR Natural Casing (all beef frankfurter with Natural Casing) Toppings: Garden (poppy-seed roll, sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt) OR Dirty Water (white-bread roll, sauerkraut, mustard, onions, and tomato relish) Price: $2.50 or $3.50 Hot Dog Garden Vienna Beef $2.50 Rank - 2 Garden Natural Casing $2.50 Rank - 1 Topping Dirty Water Vienna Beef $2.50 Rank - 6 Dirty Water Natural Casing $2.50 Rank - 5 Price Garden Vienna Beef $3.50 Rank - 4 Garden Natural Casing $3.50 Rank - 3 Topping Dirty Water Vienna Beef $3.50 Rank 8 Dirty Water Natural Casing $3.50 Rank - 7 a. Score the hot dog offerings from 0 to 7, with 0 being the lowest-utility hot dog and 7 being the highest-utility hot dog. b. Calculate the part-worth utility of each of the attributes at their different levels. c. For each combination of hot dogs, toppings, and prices, what is the utility measured in utils?
Chapter 3 exercise 3. The Chicago Garden Dog is served with a Vienna beef wiener on a poppy-seed roll with sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt. A New York Dirty Water Dog is served with a natural- casing all beef frankfurter on a white-bread roll with sauerkraut, mustard, onions, and tomato relish. A researcher wants to investigate the pricing of a Chicago Garden Dog and a New York Dirty Water Dog. She collects the following rank order information regarding the perceived value of the different attributes of hot dogs, where 1 is most preferred and 8 is least preferred. Dog: Vienna Beef OR Natural Casing (all beef frankfurter with Natural Casing) Toppings: Garden (poppy-seed roll, sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt) OR Dirty Water (white-bread roll, sauerkraut, mustard, onions, and tomato relish) Price: $2.50 or $3.50 Hot Dog Garden Vienna Beef $2.50 Rank - 2 Garden Natural Casing $2.50 Rank - 1 Topping Dirty Water Vienna Beef $2.50 Rank - 6 Dirty Water Natural Casing $2.50 Rank - 5 Price Garden Vienna Beef $3.50 Rank - 4 Garden Natural Casing $3.50 Rank - 3 Topping Dirty Water Vienna Beef $3.50 Rank 8 Dirty Water Natural Casing $3.50 Rank - 7 a. Score the hot dog offerings from 0 to 7, with 0 being the lowest-utility hot dog and 7 being the highest-utility hot dog. b. Calculate the part-worth utility of each of the attributes at their different levels. c. For each combination of hot dogs, toppings, and prices, what is the utility measured in utils?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
NEED ASAP. Please answer all items(letters) correctly.
Transcribed Image Text:4. In the Chapter 3 exercise, we evaluated the utility and optimal prices for
different hot dog offers. Calculate the partial utility of a Vienna Beef Garden
Dog, Vienna Beef Dirty Water Dog, Natural Casing Garden Dog, and Natural
Casing Dirty Water Dog. Use the prices found from conjoint analysis to
construct a plot of price vs. hot dog utility for the different configurations of
hot dogs.
Transcribed Image Text:Chapter 3 exercise
3. The Chicago Garden Dog is served with a Vienna beef wiener on a poppy-seed roll
with sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport
peppers, and celery salt. A New York Dirty Water Dog is served with a natural-
casing all beef frankfurter on a white-bread roll with sauerkraut, mustard, onions,
and tomato relish. A researcher wants to investigate the pricing of a Chicago
Garden Dog and a New York Dirty Water Dog. She collects the following rank
order information regarding the perceived value of the different attributes of hot
dogs, where 1 is most preferred and 8 is least preferred.
Dog: Vienna Beef OR Natural Casing (all beef frankfurter with Natural Casing)
Toppings: Garden (poppy-seed roll, sweet pickle relish, mustard, onions, tomato
wedges, cucumber slices, sport peppers, and celery salt) OR Dirty Water
(white-bread roll, sauerkraut, mustard, onions, and tomato relish)
Price: $2.50 or $3.50
Hot Dog
Garden
Vienna Beef
$2.50
Rank = 2
Garden
Natural Casing
$2.50
Rank - 1
Topping
Dirty Water
Vienna Beef
$2.50
Rank = 6
Dirty Water
Natural Casing
$2.50
Rank - 5
Price
Garden
Vienna Beef
$3.50
Rank - 4
Garden
Natural Casing
$3.50
Rank - 3
Topping
Dirty Water
Vienna Beef
$3.50
Rank 8
Dirty Water
Natural Casing
$3.50
Rank - 7
a. Score the hot dog offerings from 0 to 7, with 0 being the lowest-utility hot dog
and 7 being the highest-utility hot dog.
b. Calculate the part-worth utility of each of the attributes at their different levels.
c. For each combination of hot dogs, toppings, and prices, what is the utility
measured in utils?
d. Calculate the dollar value per util.
e. What is the utility difference between Garden toppings and Dirty Water
toppings in utils?
f. What is the utility difference between Vienna beef dogs and natural-casing dogs
in utils?
g. If a nearby established competitor offers a Chicago Garden Dog at $3, what
would be an appropriate price for a natural-casing hot dog with Garden
toppings? A natural-casing hot dog with Dirty Water toppings? A Vienna beef
dog with Dirty Water toppings?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps with 2 images
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
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
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
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education