WEEK $4$

SWEET SHOP ICE CREAM PARLOR CASE STUDY ASSIGNMENT

You are manager of the Sweet Shop Ice Cream Parlor. The shop is located in a densely populated

residential area of town and has a relatively loyal following, even though it opened for business

only one year ago. All of the customers say great things about the ice cream and the service. The

owner of Sweet Shop wants to conduct some telephone surveys to measure residents' attitudes

toward the Sweet Shop. He has developed the following question to be asked during the phone

interview of $300$ randomly selected residents from all areas of town.

On a five$-$point scale, where $5=$ positive, and $1=$ negative, how would you rate your

overall feelings toward the Sweet Shop Ice Cream Parlor?

The owner has decided to base your annual bonus on the results from the survey. If the average

rating is $4\mathrm{.}0$ or greater you will receive a $$10,000$ bonus. However, if the average rating is less

than $4\mathrm{.}0$ you will receive only a $$1,000$ bonus. The surveys will be conducted by an independent

research firm. Further, the owner does not want to include a Don't Know$/$No Opinion option

because he believes it only leads to a lower response rate $($people can simply answer DK$/$NO

without giving an opinion$),$ and he wants to get his money's worth from the surveys.

Do you feel that this question will provide valid results yes or no$?$ Explain your response.

What is the likely outcome of this scale?