Isabella Nunez is the marketing manager for Safe Home Inc. Safe Home Inc. offers

Question

Isabella Nunez is the marketing manager for Safe Home Inc. Safe Home Inc. offers a new electronic home security device. Isabella is examining whether she should offer a single package or a basic package with additional options at higher prices. She is looking at data from a survey that was conducted during the concept stage of product development. One research question asked a sample of home owners what they would be willing to pay for this electronic home security device. Assume Isabella gets the following three sets of means and standard deviations (from three separate samples of home owners). Which set of mean and standard deviation would suggest that Isabella should offer the basic package and several options at higher prices? Explain your answer.

M = $425 and SD = 42.2

M = $505 and SD = 15.3

M = $595 and SD = 120.5

Explanation / Answer

Best Offer package : M = $505 and SD = 15.3

since In this, SD value is less than that of 1st and 3rd offers

In 3rd offer, M = 595 is high but SD is also more than remaining two offers

So Best Offect Pack : 2nd one

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