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QUESTION

You are in a brainstorming session at WidgeCorp, where no idea is too outrageous. You are discussing penetration in the school lunch market.

You are in a brainstorming session at WidgeCorp, where no idea is too outrageous. You are discussing penetration in the school lunch market. Ideas around school lunch subsidies, Internet subsidies, and Internet target marketing are being discussed. As the end of the meeting, the group asks you to prove or disprove some assumptions by looking at correlations.

First, acquaint yourself with the Internet subsidy issue by reading the article Closing the Digital Divide: Internet Subsidies in Public Schools by Austan D. Goolsbee and Jonathan Guryan.

Next, download the file Sample Data. Based on the findings as reported in this article, create a chart similar to the one in the downloaded file to indicate if the correlation between Variables A and B were found to be positive, negative, or minimal. Provide some explanation of your decisions.

Explain what it means if the correlation of 2 variables is positive, negative, or minimal (close to 0), and give an example (outside of the context of Closing the Digital Divide) of each.

What do you deduce from the correlations? What are the implications in the school lunch market for Widgecorp? What are the implications for the penetration into the lunch market? Also, how can you use the correlation tools to identify the variables in the research toward the expansion of the snack food market?

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