Question

Activity #4

Standard Deviation and Standard Error

Imagine you are a researcher for the Tesla Motor Company interested in learning the maximum price consumers are willing to pay for an electric truck. As a pretest, you conducted a small survey from a convenience sample of 25 shoppers at a local mall and asked participants to state how much they would be willing to pay for a brand new electric truck (i.e., Cybertruck) like the one pictured above. The results of the survey are posted in the table located on the next page.

1. What is wrong with conducting a survey this way? What would you do differently?
2. BY HAND, determine the mean and standard deviation of the price data. What does the standard deviation mean? NOTE: Remember, you can conduct standard deviation by hand in excel if you want.
3. Calculate the standard error, what does it tell you?

Table: Price Consumers are Willing to Pay for an Electric Truck

Participant i	Price Consumers Willing to Pay ($1000s)
1	60
2	26
3	66
4	73
5	66
6	49
7	74
8	65
9	72
10	29
11	56
12	73
13	62
14	28
15	42
16	40
17	27
18	29
19	43
20	62
21	25
22	47
23	71
24	39
25	33

Answer 1