Cardio Good Fitness

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