A finished DBA-815 Topic 5 elasticity estimation DQ post example, rejecting a confounded price history and proposing a matched-pair test of new-member dues, with its limits and the fairness objection addressed. Searches like "dba 815 topic 5 assignment example", "dba815 topic 5 sample" and "dba-815 topic 5 example" land here.
What a finished DBA-815 Topic 5 elasticity estimation dq post looks like
A position opens the post: the chain should buy its elasticity estimate with a test, because the data it already holds cannot supply one. Each of the chain's past increases took effect in January, alongside its heaviest advertising and the year's surge of new joiners, so any change in joins mixes the price with the season. Comparing clubs with different local incomes fails for a similar reason. The proposal follows. Six pairs of clubs, matched on size and competitive setting, run for eight weeks with new members at one club of each pair offered $54 and at the other $49, figures illustrative, while existing members keep their rate. Joins are compared within pairs. The post concedes that eight weeks measures the join response rather than year-long retention, and commits to following the $54 cohort for six months.
How a DBA-815 Topic 5 example is structured
Its argument takes four paragraphs, with a question for classmates at the end. The opening paragraph states the position and the reason in two sentences, so a classmate can disagree at once. The second explains why the chain's own records cannot identify elasticity, naming the January timing of every past increase and the income differences between club locations as the two confounds. The third sets out the test: matched pairs, a single price difference applied only to new members, eight weeks, and a comparison within each pair so that season and local conditions cancel. The fourth takes the objection a marketing director would raise first, that members who notice two prices will call it unfair, and answers that prices differing by location are common and existing members are untouched. The closing question asks how long a join-rate response must be followed before it can stand in for long-run elasticity.
A test, because history cannot answer
The chain holds plenty of price and membership data, yet none of it separates the effect of price from the effects that accompanied every change.
Every increase arrived in January
Past rises coincided with the heaviest advertising and the New Year surge of joiners, so the join data mix price, promotion and season together.
Six matched pairs for eight weeks
Clubs paired on size and competitive setting offer new members $54 at one and $49 at the other, and joins are compared within each pair.
Existing members left untouched
Only new members see the test price, which protects retention during the test and answers most of the fairness objection before it is raised.
Joins now, retention later
Eight weeks shows how joining responds to price, not how long the $54 cohort stays, so the post commits to six months of follow-up.
Where marks go in DBA-815 Topic 5
Answers that list estimation methods, surveys, regressions, experiments, without choosing one for this firm treat the prompt as a request for a menu. Regressing joins on the chain's own past prices is the answer that loses the most, because the January timing means the estimate measures the season as much as the price. Posts that propose a test and apply it to existing members invite churn the test was never meant to cause. Some designs compare different clubs without matching them, so local income and competition contaminate the result the pairing exists to protect. A post that claims the test yields long-run elasticity overstates eight weeks of join data. Stated-preference surveys offered as the whole answer rely on what people say they would pay, which pricing research has long treated as a weaker guide than what they actually do.
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DBA-815 Topic 5 questions, answered
Why can't the chain use its own price history?
Because nothing about its past increases was random. Each took effect in January, when advertising peaks and new joiners arrive in large numbers for reasons unrelated to price. Any movement in joins after an increase therefore blends the price effect with the season and the promotion. Economists call this an identification problem: the data exist, but they cannot separate the one cause the chain needs to measure from the others that moved with it.
Why match clubs in pairs?
So that whatever differs between locations, local income, nearby rivals, club size, is held roughly equal within each comparison. Both clubs in a pair face the same season and similar competition, so a gap in joins between them can be attributed to the price difference. Which club in each pair receives the higher price is assigned at random, so the chain's own hunches about location cannot steer the result.
Is charging new members different prices fair?
The objection deserves an answer rather than dismissal. Members do judge prices by fairness as well as amount, and a visible difference at the front desk can cost goodwill. The post limits the test to new members, keeps it to eight weeks, and notes that prices commonly vary by location across the fitness industry. Existing members pay what they paid before, which is where fairness complaints are most likely to arise.