Cardio Good Fitness

Paper details
CardioGood Fitness Return to the CardioGood Fitness case (stored in CardioGood Fitness ) first presented
on page 33. 1. For each CardioGood Fitness treadmill product line, determine whether the age, income,
usage, and the number of miles the customer expects to walk/run each week can be approximated by the
normal distribution. 2. Write a report to be presented to the management of CardioGood Fitness detailing
your findings.
CardioGood Fitness CardioGood Fitness is a developer of high-quality cardiovascular exercise equipment.
Its products include treadmills, fitness bikes, elliptical machines, and e-glides. CardioGood Fitness looks to
increase the sales of its treadmill products and has hired The AdRight Agency, a small advertising firm, to
create and imple-ment an advertising program. The AdRight Agency plans to iden-tify particular market
segments that are most likely to buy their clients’ goods and services and then locate advertising outlets
that will reach that market group. This activity includes collecting data on clients’ actual sales and on the
customers who make the purchases, with the goal of determining whether there is a distinct profile of the
typical customer for a particular product or service. If a distinct profile emerges, efforts are made to match
that profile to advertising outlets known to reflect the particular profile, thus targeting advertising directly to
high-potential customers. CardioGood Fitness sells three different lines of treadmills. The TM195 is an
entry-level treadmill. It is as dependable as other models offered by CardioGood Fitness, but with fewer
programs and features. It is suitable for individuals who thrive on minimal programming and the desire for
simplicity to initiate their walk or hike. The TM195 sells for $1,500. The middle-line TM498 adds to the
features of the entry-level model: two user programs and up to 15% elevation upgrade. The TM498 is
suitable for individuals who are walkers at a tran-sitional stage from walking to running or midlevel runners.
The TM498 sells for $1,750. The top-of-the-line TM798 is structurally larger and heavier and has more
features than the other models. Its unique fea-tures include a bright blue backlit LCD console, quick speed
and incline keys, a wireless heart rate monitor with a telemetric chest strap, remote speed and incline
controls, and an anatomical figure that specifies which muscles are minimally and maxi-mally activated.
This model features a nonfolding platform base that is designed to handle rigorous, frequent running; the
TM798 is therefore appealing to someone who is a power walker or a runner. The selling price is $2,500.
As a first step, the market research team at AdRight is assigned the task of identifying the profile of the
typical cus-tomer for each treadmill product offered by CardioGood Fitness. The market research team
decides to investigate whether there are differences across the product lines with respect to customer
characteristics. The team decides to collect data on individuals who purchased a treadmill at a CardioGood
Fitness retail store during the prior three months. The team decides to use both business transactional data
and the results of a personal profile survey that every purchaser 33 completes as the team’s sources of
data. The team identifies the fol-lowing customer variables to study: product purchased—TM195, TM498,
or TM798; gender; age, in years; education, in years; relationship status, single or partnered; annual
household income ($); mean number of times the customer plans to use the treadmill each week; mean
number of miles the customer expects to walk/ run each week; and self-rated fitness on a 1-to-5 scale,
where 1 is poor shape and 5 is excellent shape. For this set of variables: 1. Which variables in the survey
are categorical? 2. Which variables in the survey are numerical? 3. Which variables are discrete numerical
variables