A. What does Coffee Time (CT) really know about the various locations in India? What doesn’t CT know that it might learn from further research?

CT knows the degree of affluence, the cultural outlook whether the population is conservative or modern and they know the consuming class. The consuming class is the portion of the population that contributes to the GDP through expenditure, to include consumers whose potential for consumption goes beyond bare necessities.

The following information is what CT does not know that it may learn from further research: the number of students that attend school or college and the total number of people who visit malls and restaurants.

B. How do limitations of the data available to CT affect the validity/reliability of the data?

Donald Cooper and Pamela Schlinder define validity as “the extent to which a test measures what we actually wish to measure”. They also define reliability as “the accuracy and precision of a measurement procedure” (2003, Chp 8). A measure that is used, but has limitations in data, will affect the validity of the information, but not necessarily the reliability. However, “if a measurement is not valid, it hardly matters if it is reliable, because it does not measure what the designer need to measure in order to solve the research problem” (Cooper and Schlinder, 2003, Chp 8).

C. What further data further data should be decided before selecting a location for CT? How would CT obtain a random sample?

Below is some additional data that should be decided:

1. Amount consumers would pay for coffee

2. Total number of college students

3. Total number of school students

4. Total number of visitors to malls, restaurants

CT could obtain a random sample by using the last two digits of social security numbers. The economic stimulus checks are being paid on a certain date according to last two digits of the social security number. The same method could be employed to randomly sample who will receive CTs...