Direct marketing campaign for an online clothing retailer
You are designing a direct marketing campaign for an online clothing retailer. As part of your design, you quantify the expected response rates by ethnic group. Your definition of the term “ethnicity” follows that of the U.S. Census Bureau (e.g., Hispanic, Asian, African American, etc.). You want to test your campaign using 1,000 randomly selected households, but you want your sample to mimic the US population in terms of the proportion of different ethnicities (e.g., if Hispanics constitute about 12 percent of the US population, 12 percent of your sample should be Hispanic).
Assess the appropriateness of using a simple random sample as the test’s sampling plan.
Evaluate other potential sampling plans, and describe why such other sampling plans might be more or less appropriate than using a simple random sample. Support your discussion with relevant examples, research, and rationale.
You are a manager working for an insurance company. Your job entails processing individual claims filed by policyholders. In general, few claims are expensive. Each quarter, you compile a report summarizing key claim statistics, such as the number of claims submitted, the average cost per claim, and the total cost of submitted claims. In the last quarter’s report, you notice a large difference between the mean and the median claim cost, the mean cost being much higher than the median cost.
Draw a conclusion as to why you might be observing this difference in the data.
Evaluate whether this information might be useful for determining if the claims data is normally distributed.
If you conclude that the data is likely normally distributed, explain why. If not, suggest another distribution that might best describe the data. Explain why this distribution would be a more accurate representation of the data.
Given the large difference between the two measures of central tendency, which of the two measures would you rely on in describing the average claim cost and why? Support your discussion with relevant examples, research, and rationale.
Sample Solution
You must first determine your apparel company’s target market before you begin dropshipping. You need to know who you’re selling to so you could do it well! Just because you’re offering skirts doesn’t mean every woman will want to buy them. They all have different fashion preferences. You’ll need to narrow down your target demographic in order to get the most bang for your buck with your advertising spending. You can generate content with a clear direction once you know who your target audience is! After all, when promoting a classic high-waist skirt versus a neon tutu, you’d probably use different language and imagery. Also,
