Conjoint Analysis and Direct Value Method (DVM) 1. For the student data collected and shown below and using Excel: 1 1 1 0 1 FE 20 to 30 mpg $ 25,000 $ 25,500 $ 26,000 $ 26,500 $ 27,000 $ 28,000 0 0 1 1 0 0 0 0 1 1 0 0 0 0 0 0 a. Perform DVM calculations and find the neutral price for the fuel economy (FE) attribute. b. Estimate the value (in $) for an improvement of the fuel economy automotive attribute from a baseline value of 20mpg to 30 miles per gallon (mpg). Assume the following: (a) gas price = $3/gallon, (b) average annual driving = 15,000 miles/year, and (c) average life of product = 5 years. Discuss the difference in the results found in parts (a) and (b). c. 2. The product under study is a new MP3 player. Two new designs are being compared to a baseline design. The new designs will cost the same to produce as the baseline, but they perform differently on two CV attributes, as shown in the table below. CV Attribute Units Baseline Weight grams 280 Memory MB 256 A B 200 320 200 2000 CV Attribute Units ZC ZI Weight Grams 800 50 Memory MB 5 1 0.8 00 a. Using the Value curve formulas, calculate the value index for each attribute/alternative combination using the gammas noted above. b. Combine the indexes to arrive at an aggregate measure of value for alternatives A and B. c. Which alternative is preferred based on the calculations. Conjoint Analysis and Direct Value Method (DVM) 1. For the student data collected and shown below and using Excel: 1 1 1 0 1 FE 20 to 30 mpg $ 25,000 $ 25,500 $ 26,000 $ 26,500 $ 27,000 $ 28,000 0 0 1 1 0 0 0 0 1 1 0 0 0 0 0 0 a. Perform DVM calculations and find the neutral price for the fuel economy (FE) attribute. b. Estimate the value (in $) for an improvement of the fuel economy automotive attribute from a baseline value of 20mpg to 30 miles per gallon (mpg). Assume the following: (a) gas price = $3/gallon, (b) average annual driving = 15,000 miles/year, and (c) average life of product = 5 years. Discuss the difference in the results found in parts (a) and (b). c. 2. The product under study is a new MP3 player. Two new designs are being compared to a baseline design. The new designs will cost the same to produce as the baseline, but they perform differently on two CV attributes, as shown in the table below. CV Attribute Units Baseline Weight grams 280 Memory MB 256 A B 200 320 200 2000 CV Attribute Units ZC ZI Weight Grams 800 50 Memory MB 5 1 0.8 00 a. Using the Value curve formulas, calculate the value index for each attribute/alternative combination using the gammas noted above. b. Combine the indexes to arrive at an aggregate measure of value for alternatives A and B. c. Which alternative is preferred based on the calculations