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91Ó°ÊÓ

Airport Shuttle. Blue Ribbon taxis offers shuttle service to the nearest airport. You look up the online reviews for Blue Ribbon taxis and find that there are 17 reviews, six of which report that the taxi never showed up. Is this a biased sampling method for obtaining customer opinion on the taxi service? If so, what is the likely direction of bias? Explain your reasoning carefully.

Short Answer

Expert verified
Yes, it's a negatively biased sample as dissatisfied customers are more likely to leave reviews.

Step by step solution

01

Understanding Biased Sampling

To determine if there is biased sampling, we need to identify if the reviews are a representative sample of all customers. Biased sampling occurs when the sample does not reflect the general population, often due to the way in which the sample is collected.
02

Analyzing the Source of Reviews

The 17 reviews are collected online, likely from customers motivated to share their experiences. These individuals might be more inclined to write reviews if they had particularly negative experiences, such as the taxi not showing up.
03

Calculating the Percent of Negative Reviews

Out of 17 reviews, 6 report no-show incidents. To find the percentage, calculate: \( \left( \frac{6}{17} \right) \times 100 \approx 35.3\% \). This means roughly 35.3% of the online reviews are negative.
04

Inferring Likely Bias Direction

If customers with negative experiences are more motivated to leave reviews, this suggests a negative bias. Hence, the reviews might over-represent the problems experienced by customers regardless of the overall service quality.
05

Conclusion on Bias

The collection method (online reviews) is biased towards dissatisfied customers. Thus, it overemphasizes negative experiences, which makes it likely that the overall satisfaction might be higher than what the reviews suggest.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Representative Sample
A representative sample is a small group that accurately reflects the larger group from which it is drawn. In statistics, obtaining a representative sample is crucial because it allows us to make reliable inferences about the entire population based on the small sample.

In the case of online reviews for Blue Ribbon taxis, a representative sample would capture the full spectrum of customer experiences, both positive and negative. This means that if Blue Ribbon taxis generally performs well, then the reviews should reflect a mix of happy and unhappy customers in proportions that mirror the total user base.

However, in many cases, online reviews may not provide a representative sample. Often, the reviews are submitted predominantly by those with strong feelings about their experience, either extremely positive or negative. This can lead to a skewing of the data if not properly balanced.
Customer Opinion
Customer opinion refers to the perceptions, feelings, and attitudes that consumers have regarding a product or service. This opinion is typically gathered through various feedback mechanisms such as surveys, reviews, or direct feedback.

In this exercise, the focus is on online reviews as a source of customer opinion for Blue Ribbon taxis. While this platform can offer valuable insights into customer experiences, it may not always present a holistic view of customer sentiment due to biased sampling.

For a business to truly understand customer opinion, it is important to employ multiple methods of data collection, beyond just online reviews. This would include surveys directly sent to customers or feedback through channels like customer service to ensure a more balanced and comprehensive understanding of the opinion landscape.
Review Analysis
Review analysis involves scrutinizing customer reviews to gain insights into their experiences and the perceived quality of a service. It usually consists of examining review content to identify patterns and trends.

For the Blue Ribbon taxis, analyzing the 17 available reviews highlighted a significant portion reporting negative experiences, particularly no-show situations. To perform an effective review analysis, it’s critical to look beyond the sheer numbers and consider the context in which the reviews are written.

For instance, identifying the commonalities among dissatisfied customers can provide actionable insights into areas needing improvement, such as punctuality. Furthermore, balancing this negative feedback with positive experiences is essential for a fair assessment, requiring deeper analysis than just a surface-level reading of percentages.
Online Reviews Bias
Online reviews can suffer from bias, often influenced by the tendency for individuals with negative experiences to be more vocal than those with positive or mundane experiences. This can lead to a skew in how a service is perceived based on the reviews.

The situation with Blue Ribbon taxis exemplifies this bias. With six out of 17 reviews being negative, it suggests a leaning towards dissatisfied customers taking the initiative to share their experiences online. This might create an impression of poor service quality even if the majority of customers are satisfied.

Understanding this bias is critical for businesses and consumers alike. Businesses need to interpret these reviews with caution, actively seek more representative feedback, and encourage a broader range of customers to share their experiences. Consumers should be aware that online reviews might not tell the full story and take them with a grain of skepticism.

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Most popular questions from this chapter

NPR Facebook Survey. In 2010, National Public Radio (NPR) conducted a survey of preferences and habits of its Facebook fans by recruiting respondents through messages posted on its Facebook page. The survey was conducted online and deployed July \(12-19\). A total of 40,043 respondents began the survey, with 33,304 completing all questions. It was found that people accessed NPR on the radio, at the website NPR_org, through iPhone apps, and several other platforms. Asked about time spent with NPR, about \(20 \%\) of respondents indicated that they spent more than three hours per day, including radio listening. (a) Here is what NPR says about the survey methodology: "Respondents were self-selected and the resulting sample is non-random-therefore a margin of error cannot be calculated, and the survey results cannot be projected to any population other than the sample itself."18 Why can't inference about any population be made? (b) Suppose that people who spent more time with NPR were more likely to respond to the survey. Do you think the true percentage of NPR's Facebook fans who spend more than three hours with NPR is higher or lower than the \(20 \%\) found from the survey? Explain why.

An online store contacts 1000 customers from its list of customers who have purchased in the last year. In all, 696 of the 1000 say that they are very satisfied with the store's website. The population in this setting is (a) all customers who have purchased something in the last year- (b) the 1000 customers contacted. (c) the 696 customers who were very satisfied with the store's website.

Academic Dishonesty. A study of academic dishonesty among college students used a two-stage sampling design. The first stage chose a sample of 30 colleges and universities. Then, the study authors mailed questionnaires to a stratified sample of 200 seniors, 100 juniors, and 100 sophomores at each school. \({ }^{6}\) One of the schools chosen has 1127 freshmen, 989 sophomores, 943 juniors, and 895 seniors. You have alphabetical lists of the students in each class. Explain how you would assign labels for stratified sampling. Then use software, the Simple Random Sample applet, or Table B, starting at line 138 , to select the first four students in the sample from each stratum. After selecting four students for a stratum, continue to select the students for the next stratum.

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