Due: Nov 09 by 11:59pm
Weight: This assignment is worth 3% of your final grade.
Purpose: The purpose of this assignment is to introduce the concept of willingness to pay (WTP) and to learn how we can use estimated model coefficients to compute estimates of WTP and make predictions about how likely people would be to choose each option in a set of alternatives.
Assessment: This assignment is graded using a check system:
- ✔+ (110%): Responses shows phenomenal thought and engagement with the course content. I will not assign these often.
- ✔ (100%): Responses are thoughtful, well-written, and show engagement with the course content. This is the expected level of performance.
- ✔− (50%): Responses are hastily composed, too short, and/or only cursorily engages with the course content. This grade signals that you need to improve next time. I will hopefully not assign these often.
Notice that this is essentially a pass/fail system. I’m not grading your writing ability and I’m not counting the number of words you write - I’m looking for thoughtful engagement.
Download and edit this template when working through this assignment. Notice that this week’s template is a .Rmd file.
At this point in the class, we know how to design conjoint surveys, field them on formr.org, clean the resulting data, estimate models, and assess the uncertainty around the resulting coefficients. But what do those coefficients actually mean? How should we use them to gain design insights?
This week, we’ll begin considering these questions as we learn how to use estimated model coefficients to compute estimates of “willingness to pay” (WTP) and make predictions about how likely people would be to choose each option in a set of alternatives. Take notes as you watch the video on these topics, and answer the practice questions in the video as part of your reflection. You may submit your answers however you wish, e.g. hand-write them on paper and take a picture and / or type answers in your reflection .Rmd file.
Click here to download the slides in the video as a PDF.
Reflect on what you’ve learned and any questions or points of confusion you have about WTP and market simulations. Is there anything that jumped out at you? Anything you found particularly interesting or confusing? After reflecting, do the following: