Question

1. Consider the following case study: On 12/1/96 ACME Direct purchases some new enhancement data that will tell them peoples ages, marital status, number of children, income levels, and job level (blue collar, executive, etc.) On 1/1/97 they conducted a “When” test to 10,000 names residing on our database with an offer for a unique family oriented interactive computer game (still in the planning stages). They immediately analyzed the sample on 3/1/97 and determined those that ordered were mostly between the ages of 30-35, married, with children, and employed in executive management. On 1/1/98 (one year later) the new computer game complete and ready to be sold. Is ACME Direct advised to update their enhancement data regarding marital status, children data and employment information before applying the selection criteria based on the 3/1/97 test? And, why or why not?

Answer 1

No ACME is not direct advised to update their enhancement data regarding marital status,children data and employment information before applying the selection criteria based on th 3/1/97 test. Because from the 3/1/97 test data it can get insights of 10000 samples and it was disclosed that most of the data follow a particular trend so this insight is helpful and statistically significant.