Manager's Dilemma

The client, Tess Motors, have hired the Three Amigos research firm to solve some challenges in the company. The problem, or the effect of two dependent variables, are computer failures and abrupt car stalls. These are two separate variables that happen either one at a time or the same time. Research will focus on the independent variable that has a higher probability of causing these problems. The computer system is the independent variable for this research.
Background

Tess Motors is a high-end 100% electric vehicle manufacturer based in California. The price range for their cars ranges from $71,000 to $100,000. Customers who purchase cars from Tess Motors expect a high-quality car for this price. The company understands their customers' demands and has attempted to meet them. In the prior year, the company received top ratings by Consumer Reports (Hirsch, 2014)

Business Problem

Recently, the company had electronic issues with their cars. Cars would stall on the road for no reason; door handles would not work, and the touch screen that controls other functions would stop working. Edmonds.com, a survey company for cars, had three separate problems on their car at one time while the car stalled on the road (Hirsch, 2014).

The company is worried about losing its' high rating from Consumer Reports. The last years report was based on only 637 consumers (Hirsch, 2014). This year, the company is expected to sell 20,000 cars (Hirsch, 2014). The increase in consumers will increase the sample size for the Consumer Reports and may have a negative effect on Tess Motors' survey (Hirsch, 2014).

Research team role. The team will determine if the independent variable is the cause of the problem and how it may affect future surveys from the Consumer Reports.

Research Question 1

Is the quality control at Tesla automotive capable of manufacturing an automobile without fundamental defects. The measurable element is by x number of defects; the measurement is attainable by industry standard of fault; this is a realistic measurement that should be completed by Tesla; the time of the survey is 90 days. The hypothesis (Ho) is: Tesla's issue with quality control could affect consumer confidence as reflected in consumer report data. (H1) How could Tesla's quality control effect consumer confidence data as reported by consumer report magazine.

Research Question 2

The research question is if there is a greater likelihood of experiencing a fire in a Tesla (DV) due to the presence of an onboard computer (IV). The hypothesis (Ho): there is a greater likelihood you will experience a fire in a Tesla (DV) due to the presence of an onboard computer (IV). (H1) There is less likelihood that you will experience a fire in a Tesla (DV) due to the presence of an onboard computer.

References
Hirsch, J. (2014). Will Tesla Model S lose Consumer Reports' top recommendation?The Los Angeles Times.