Question

1. Some car designers at Honda think that the present design of Honda civic is too sporty and that if the new design is more family-friendly, it will sell much more than the current model. Some others in the same design committee disagree. You are the head of sales and design. Describe how you would use a technique you learned in MIS to predict the sales of the new design if it is changed to be family-friendly.
2. What would you do to increase “customer intimacy” at Mandarin Hotel.

Answer 1

Using the Decision Support Systems, the sales prediction for the new design of the Honda Civic can be done. The decision support system involves making better prediction by generating statistical projection from the available analyzed data for sales. The sales figures for other cars (in the same price bracket in which the civic stands) can be collected and analyzed and distribution function for the sales can be obtained. This will help in better decision making to managers. The collected data will include the sales figure of cars which are family-friendly and in the same price range of the civic. The histogram, cumulative distribution and probability distribution can be plotted for the collected data. If the distribution follows the normal (Gaussian Distribution) distribution, the trend for the choice of the customer can be obtained. Using the probability distribution function, it would be better to predict the sales for the given volume of the production by analyzing past data.