Game Score - Game Talk Discussion Forum

Daniel · Posted: Sat May 17, 2003 3:20 pm Post subject: Math Problem #3

There is a fast food chain, the company has food places in new zealand and in australia.

In the year 2002 the australian stores increase their share of the australian fast food market over and above its market share of 2001 in australia.

Similarly the new zealand stores increase their share of the new zealand fast food market over and above its marketshare of 2001 in new zealand.

But their combined market share in both markets was larger in 2001 than it now is in 2002.

Explain why.

A wordy explanation with get partial credit and a mathematical example of the situation will get full credit.

Fish · Civilian Joined: 17 May 2003 Posts: 4

they sold them?

Daniel · Posted: Sun May 18, 2003 1:12 am Post subject:

MaxxRonin · Posted: Tue May 20, 2003 4:45 pm Post subject:

if it is shares as in shares in the stock market, it it because the shares split?

Daniel · Posted: Tue May 20, 2003 11:47 pm Post subject:

MaxxRonin · Posted: Thu May 22, 2003 4:14 pm Post subject:

then is it because the market has increased its size, therefore the percentage of the market that the food company owns could still be less than last year because they may have more shares but a less percentage.

Daniel · Posted: Fri May 23, 2003 10:12 am Post subject:

Daniel · Posted: Mon Jun 02, 2003 1:29 pm Post subject:

Noone seems to be getting anywhere with this problem, so if there are no new attempts in the next 24 hours or so I will put up the solution.

MaxxRonin · Posted: Mon Jun 02, 2003 3:21 pm Post subject:

i am just throwing this to the wind, but did they claim bankruptcy?

Daniel · Posted: Mon Jun 02, 2003 10:32 pm Post subject:

MaxxRonin · Posted: Mon Jun 02, 2003 11:27 pm Post subject:

im all out of ideas, so can we have the answer now pleeeeeeaaaaase have the answer? Very Happy

Daniel · Posted: Tue Jun 03, 2003 5:01 am Post subject:

37% of NZ -> 40%
60% of Ausie -> 65%

75% of Ausie -> 40% of Ausie

Hence originally they had
.6 * .75 + .37 * .25 = 0.5425
and now they have
.65 * .4 + .4 * .6 = 0.5

MaxxRonin · Posted: Tue Jun 03, 2003 3:33 pm Post subject:

where do you get 75% of australia to 40% of australia?

Daniel · Posted: Tue Jun 03, 2003 11:43 pm Post subject:

37% of NZ is the market share of new zealand market that the company had in 2001. And they had 60% of australia in 2001.

Then two numbers to the right 40% and 65% are the amounts they had in 2002.

The 75% of Ausie, means that in 2001 ausie made up 75% of the combined NZ and Ausie market. While in 2002 it only made up 40%. So what we see if a shift, so that less people are buying the product in australia compared to new zealand over the year 2001 to 2002.

Then you can use these figuires to calculate their combined market share as below. Showing that even though the market shares increased in both countries for the company their overall market share dropped. This type of this is known in statistics as simpsons paradox or something similiar to that.