BUAD 2060 Assignment 2 – Case Problem, Metropolitan Research Inc

BUAD 2060 Assignment 2 – Case Problem, Metropolitan Research Inc

Metropolitan Research, Inc., a computer research organization, conducts surveys designed to evaluate a  wide variety of products and services available to consumers. In one particular study, Metropolitan  looked at consumer satisfaction with the performance of automobiles produced by a major Detroit  manufacturer. A questionnaire sent to owners of one of the manufacturer’s full-sized cars revealed  several complaints about early transmission problems. To learn more about the transmission failures,  Metropolitan used a sample of actual transmission repairs provided by a transmission repair firm in the  Detroit area. The following data show the actual number of miles driven for 50 vehicles at the time of  transmission failure. 

Managerial Report 

1. Use appropriate descriptive statistics to summarize the transmission failure data. 

2. Develop a 95% confidence interval for the mean number of miles driven until transmission failure  for the population of automobiles with transmission failure. Provide a managerial interpretation  of the interval estimate. 

3. Discuss the implication of your statistical finding in terms of the belief that some owners of the  automobiles experienced earlier transmission failures. 

4. How many repair records should be sampled if the research firm wants the population mean number of miles driven until transmission failure to be estimated with a margin of error of 5,000  miles? Use 95% confidence. 

5. What other information would you like to gather to evaluate the transmission failure problems  more fully?