Mercedes Goes After Younger Buyers.

Mercedes and BMW have been competing head to head for market share in the luxury-car market for more than three decades. back in 1959,BMW almost went bankrupt and nearly sold out to Daimler –Benz, the maker of Mercedes –Benz cars. BMW was able to recover to the point that in 1992 it passed Mercedes in worldwide sales. Among the reasons for BMW;s success was its ability to sell models that were more luxurious than previous model but still focused on consumer quality and environmental responsibility. In particular, BMW targeted its sales pitch to the younger market, whereas Mercedes retained a more mature customer base.
In response to BMW’s success, Mercedes has been trying to change their image by launching several products in an effort to attract younger buyers who are interested in sporty, performance-oriented cars. BMW, influenced by Mercedes , is pushing for more refinement and comfort. According to expert , the focus is still luxury and comfort for Mercedes while BMW focuses on performance and driving dynamics.
Even though each company produces many different models, two relatively comparable coupe automobiles are the BMW 330ci and Mercedes CLK320.
Mercedes is concerned that dealer price of the CLK 320 is not consistent and that even though the average price is $43,215, the price is actually normally distributed with a standard deviation of $2,981. Whereas BMW’s price also normally distributed with average price $34,990 and standard deviation of $2,367. 1.) What percentage of Mercedes dealers are pricing the CLK 320 at more than the average price for a 330ci? 2.) Mercedes believes that at $ 42,000, the CLK 320 is priced out of the BMW 330ci market. Comment 3.) Suppose a BMW dealer is selling a 330ci for $ 37,059, what percentage of Mercedes dealer prices the CLK 320 less than this price?

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