Bmw Vs Merc Statistics

Case 1:  Topic – Continuous Probability Distribution / Normal Distribution

Mercedes and BMW have been competing head to head for market share in the luxury car market for more than three decades. Back in 1959, BMW almost went bankrupt and nearly sold out to Daimler-Benz, the maker of Mercedes-Benz cars. BMW was able to recover to the point that in 1992, it surpassed Mercedes in worldwide sales. Among the reasons for BMW’s success was its ability to sell models that were more luxurious than the previous models but still focus on quality and environmental responsibility. In particular, BMW targeted its sales pitch to the younger market whereas Mercedes retained a more mature customer base.

In response to BMW’s success, Mercedes has been trying to change their image by launching several products in an effort to attract younger buyers and female customers who are interested in performance-oriented cars. BMW, influenced by Mercedes, is pushing for more refinement and comfort. In fact, one automotive expert says that Mercedes wants to become BMW, and vice versa. However according to one recent automotive expert, the focus is still on luxury and comfort for Mercedes and BMW focuses on performance and driving dynamics. Even though each car company produces many different models, two relatively comparable models are the BMW 1 series and Mercedes A Class. In 2008, the recommended retail price of a BMW 120i was $ 43,300 as compared with $ 44,800 for a Mercedes A200. Average Fuel consumption for the 120i is 8.3L/100km. For the A200, fuel consumption is 7.7L/100km

1. Suppose Mercedes is concerned that dealer prices of the A200 are not consistent and that even though the recommended retail price if $ 44,800, the prices are actually normally distributed with this mean and standard deviation of $ 1,500. Suppose also that Mercedes believes that at $ 45,000 the A200 is priced out of BMW 120i market. What percentage of dealer prices for Mercedes A200 is more than $ 45,000 and hence priced out of the BMW 120i market?

1. The recommended retail price for a BMW 120i is $ 43,300. Suppose these prices are normally distributed with a standard deviation of $ 1,200. What percentage of BMW dealers are pricing the 120i at more than the recommended retail price for the A200?

1. What percentage of Mercedes dealers are pricing the A200 are less than the recommended retail price of a 120i?

1. Suppose a BMW dealer is selling a 120i for $ 45,000. What percentage of Mercedes dealers price the A200 less than this?

(Books Referred: Applied Business Statistics (7th Edition), By Ken Black, Wiley-India Publication)

Case 2: Topic – Hypothesis Testing

McRennet Foods Limited is one of the most recognizable and popular brand names. This company was founded in Florenceville, New Brunswick, in 1957, and today it is the world's leading producer of French fries and various frozen food items.

One of McRennet's most well-known and well-liked frozen food product is its frozen pizza. In 1998, McRennet introduced Crescendo Rising Crust Pizza, its first rising crust pizza. The concept of a rising crust pizza was developed to replicate as much as possible the taste and look of takeout pizza. However, sales for this pizza were not as McRennet originally anticipated. This was because just a few months after the Crescendo introduction, Kraft introduced its Delissio frozen pizza, and with extensive advertising, Delissio became the brand leader while McRennet's Crescendo followed in second place.