Consumer Welfare in Cable TV

Data collected from the sample for the study must support the testing of three hypotheses. While the desired level of confidence will be the same for all three hypotheses, the acceptable margin of error and population variability in relation to each of the three issues to be tested will be different for each hypothesis. Thus, three calculations of required sample size were made. The largest calculated required sample was accepted as the required sample size for the study. The three calculations of required sample size are as follows:

1. Required sample to test change in cable television prices:

s = $35 (standard deviation of price change)

n = (zs/E)2 = [(2.58*35)/5]2 = (90.3/5)2 = (18.06)2

2. Required sample to test change in cable television quality:

s = .70 (standard deviation of quality change)

n = (zs/E)2 = [(2.58*.7)/.1]2 = (1.806/.1)2 = (18.06)2

3. Required sample to test change in cable television consumer welfare:

s = $23.30 (standard deviation of price change)

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tly determined since arbitrary selections of these values did not satisfy the equations and were not equilibrium values. The authors found that all regression variables were significant. Systems offered significantly more satellite channels when the franchise area included more households; these households had higher incomes, the system was older, and the channel capacity of the system was greater. A high ratio of over-the-air re-broadcast channels to total basic channels resulted in less satellite channels offered. It was concluded that cable systems provide quality as a response to economic factors. The authors also found that the number of satellite channels influences observed prices to a significant degree. Equilibrium basic service prices were significantly reduced by fiber and coaxial installation levels and system size. The authors concluded that increases in consumer gains with extra channel provision are counterbalanced by reductions due to price increases. The authors provided an explanation of their methodology, stating that the statistical model used allowed for more comprehensive findings compared to previous research. A weak point of the study was that the explanation of the model was confusing. The autho
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Some common words found in the essay are:
Size Data, H30 Variations, Northern Jersey, cable television, Analytical Approach, television services, cable television services, Survey Instrument, H20 Variations, H10 Variations, Collection Procedure, required sample, period stated, Data Sources, non-regulated period, dollar values, non-regulated period stated, value cable television, value cable, services non-regulated, television services non-regulated, zs/e2 =, quality perception, = zs/e2 =, CABLE TELEVISION,
Approximate Word count = 3926
Approximate Pages = 16 (250 words per page)

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