[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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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