Question

A small regional cell service provider, AirWaves, needs a program to offer the best service to their customers based on their needs.The company sells the following service plans:

Plan A - Talk (<500 min), Text (none), Data (none) - $49/month
Plan B - Talk (<500 min), Text (any), Data (none) - $55/month
Plan C - Talk (>=500 min), Text (<100), Data (none) - $61/month
Plan D - Talk (>=500 min), Text (>=100), Data (none) - $70/month
Plan E - Talk (any), Text (any), Data (<3 GB) - $79/month
Plan F - Talk (any), Text (any), Data (>=3 GB) - $87/month

Answer 1

The question is a business-related one concerning a regional cell service provider, AirWaves, looking to tailor their service plans based on customer usage patterns to be cheaper, faster, and of better quality.

Step-by-step explanation:

The student's question pertains to a business scenario where a small regional cell service provider named AirWaves is attempting to optimize its service plans to better match customer needs. The company offers a range of service plans, which cater to varying levels of talk time, text messaging, and data usage. To provide the best service to their customers, the company needs to understand customer usage patterns and preferences, potentially requiring data analysis and marketing strategies.

For instance, they might analyze a random sample of 80 customers who exceed their basic cell phone contract allowances to determine which service plans could be adjusted or created to offer more value. The goal is to offer options that are cheaper, provide faster, and offer better-quality data transmission, while also leveraging spin-off technologies like free Internet-based calling and video calling that may appeal to customers.

This business decision-making process is made more complex by the existence of economic principles such as utility maximization and budget constraints, as suggested by the example where customers must decide how many phone minutes they can afford within a given budget.