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Percy Lebaron Spencer
Born Jul 19 1894 - Died Sep 8 1970

High Efficiency Magnetron
Magnetron
Patent Number(s) 2,408,235

Inducted 1999


Percy Spencer, while working for the Raytheon Company, discovered a more
efficient way to manufacture magnetrons. In 1941, magnetrons were being
produced at a rate of 17 per day. Spencer set out to create a simpler
magnetron that could be mass produced. The result was a magnetron that
replaced precision copper bars with lamina and replaced soldered internal
wires with a simple solid ring. These improvements and others allowed for
the faster production of 2,600 magnetrons per day.

In 1945, Spencer created a device to cook food using microwave radiation.
Raytheon saw the possibilities of this, and after acquiring Amana
Refrigeration in 1965, was able to sell microwave ovens on a large scale.
The first microwave oven was called the Radarange, and today, there are over
200 million in use throughout the world.

Invention Impact

This discovery led to significant advances in radar and his most popular
invention, the microwave oven.

Inventor Bio

Spencer, born in Howland, Maine, was orphaned at a young age. Although he
never graduated from grammar school, he became Senior Vice President and a
member of the Board of Directors at Raytheon, receiving 150 patents during
his career. Because of his accomplishments, Spencer was awarded the
Distinguished Service Medal by the U.S. Navy and has a building named after
him at Raytheon.





A Brief History of the Microwave Oven
Like many of today's great inventions, the microwave oven was a by-product
of another technology. It was during a radar-related research project around
1946 that Dr. Percy Spencer, a self-taught engineer with the Raytheon
Corporation, noticed something very unusual. He was testing a new vacuum
tube called a magnetron (we are searching for a picture of an actual 1946
magnetron), when he discovered that the candy bar in his pocket had melted.
This intrigued Dr. Spencer, so he tried another experiment. This time he
placed some popcorn kernels near the tube and, perhaps standing a little
farther away, he watched with an inventive sparkle in his eye as the popcorn
sputtered, cracked and popped all over his lab.
The next morning, Scientist Spencer decided to put the magnetron tube near
an egg. Spencer was joined by a curious colleague, and they both watched as
the egg began to tremor and quake. The rapid temperature rise within the egg
was causing tremendous internal pressure. Evidently the curious colleague
moved in for a closer look just as the egg exploded and splattered hot yoke
all over his amazed face. The face of Spencer lit up with a logical
scientific conclusion: the melted candy bar, the popcorn, and now the
exploding egg, were all attributable to exposure to low-density microwave
energy. Thus, if an egg can be cooked that quickly, why not other foods?
Experimentation began...

Dr. Spencer fashioned a metal box with an opening into which he fed
microwave power. The energy entering the box was unable to escape, thereby
creating a higher density electromagnetic field. When food was placed in the
box and microwave energy fed in, the temperature of the food rose very
rapidly. Dr. Spencer had invented what was to revolutionize cooking, and
form the basis of a multimillion dollar industry, the microwave oven.
(Click HERE to learn even more about Dr. Percy Spencer)




Nearly 6 Feet Tall, Weighing 750 Pounds
Engineers went to work on Spencer's hot new idea, developing and refining it
for practical use. By late 1946, the Raytheon Company had filed a patent
proposing that microwaves be used to cook food. An oven that heated food
using microwave energy was then placed in a Boston restaurant for testing.
At last, in 1947, the first commercial microwave oven hit the market. These
primitive units where gigantic and enormously expensive, standing 5 1/2 feet
tall, weighing over 750 pounds, and costing about $5000 each. The magnetron
tube had to be water-cooled, so plumbing installations were also required.
Initial Reactions Were Unfavorable
Not surprisingly, many were highly reluctant about these first units, and so
they found only limited acceptance. Initial sales were disappointing...but
not for long. Further improvements and refinements soon produced a more
reliable and lightweight oven that was not only less expensive, but, with
the development of a new air-cooled magnetron, there was no longer any need
for a plumber.
The microwave oven had reached a new level of acceptance, particularly with
regard to certain industrial applications. By having a microwave oven
available, restaurants and vending companies could now keep products
refrigerator-fresh up to the point of service, then heat to order. The
result? Fresher food, less waste, and money saved.

New and Unusual Applications
As the food industry began to recognize the potential and versatility of the
microwave oven, its usefulness was put to new tests. Industries began using
microwaves to dry potato chips and roast coffee beans and peanuts. Meats
could be defrosted, precooked and tempered. Even the shucking of oysters was
made easier by microwaves. Other industries found the diverse applications
of microwave heating quite advantageous. In time, microwaves were being used
to dry cork, ceramics, paper, leather, tobacco, textiles, pencils, flowers,
wet books and match heads. The microwave oven had become a necessity in the
commercial market and the possibilities seemed endless.

The First "Radarange"

 In 1947, Raytheon demonstrated the world's first microwave oven and called
it a "Radarange," the winning name in an employee contest. Housed in
refrigerator-sized cabinets, the first microwave ovens cost between $2,000
and $3,000. Sometime between 1952-55, Tappan introduced the first home model
priced at $1295. In 1965 Raytheon acquired Amana Refrigeration. Two years
later, the first countertop, domestic oven was introduced. It was a 100-volt
microwave oven, which cost just under $500 and was smaller, safer and more
reliable than previous models.
By 1975 Sales of Microwave Ovens Exceeded that of Gas Ranges
 Technological advances and further developments led to a microwave oven
that was polished and priced for the consumer kitchen. However, there were
many myths and fears surrounding these mysterious new electronic "radar
ranges." By the seventies, more and more people were finding the benefits of
microwave cooking to outweigh the possible risks, and none of them were
dying of radiation poisoning, going blind, sterile, or becoming impotent (at
least not from using microwave ovens). As fears faded, a swelling wave of
acceptance began filtering into the kitchens of America and other countries.
Myths were melting away, and doubt was turning into demand.
By 1975, sales of microwave ovens would, for the first time, exceed that of
gas ranges. The following year, a reported 17% of all homes in Japan were
doing their cooking by microwaves, compared with 4% of the homes in the
United States the same year. Before long, though, microwave ovens were
adorning the kitchens in over nine million homes, or about 14%, of all the
homes in the United States. In 1976, the microwave oven became a more
commonly owned kitchen appliance than the dishwasher, reaching nearly 60%,
or about 52 million U.S. households. America's cooking habits were being
drastically changed by the time and energy-saving convenience of the
microwave oven. Once considered a luxury, the microwave oven had developed
into a practical necessity for a fast-paced world.

An expanding market has produced a style to suit every taste; a size, shape,
and color to fit any kitchen, and a price to please almost every pocketbook.
Options and features, such as the addition of convection heat, probe and
sensor cooking, meet the needs of virtually every cooking, heating or drying
application. Today, the magic of microwave cooking has radiated around the
globe, becoming an international phenomenon.

Inventor Spencer
Doctor Spencer continued at Raytheon as a senior consultant until he died at
the age of 76. At the time of his death, Dr. Spencer held 150 patents and
was considered one of the world's leading experts in the field of microwave
energy, despite his lack of a high school education.
On September 18, 1999, Dr. Percy LaBaron Spencer was inducted into the
National Inventors Hall of Fame and took his place in history alongside such
great inventors as Thomas Edison, the Wright Brothers and George Washington
Carver.


Microwave Oven

The microwave oven did not come about as a result of someone trying to find
a better, faster way to cook.  It was discovered that microwaves could cook
food. Called the Radar Range, the first microwave oven to go on the market
was roughly as large and heavy as a refrigerator (see picture, below).

The idea of using microwave energy to cook food was accidentally discovered
by Percy LeBaron Spencer of the Raytheon Company when he found that radar
waves had melted a candy bar in his pocket.  Experiments showed that
microwave heating could raise the internal temperature of many foods far
more rapidly than a conventional oven.

The first Raytheon commercial microwave oven was the 1161 Radarange, which
was marketed in 1954. Rated at 1600 watts, it was so large, nearly 6feet
tall and weighing 750 pounds, and expensive that it was practical only for
restaurant and institutional use.

In 1967, Amana, a division of Raytheon, introduced its domestic Radarange
microwave oven, marking the beginning of the use of microwave ovens in home
kitchens. Although sales were slow during the first few years, partially due
to the oven's relatively expensive price tag, the concept of quick microwave
cooking had arrived. In succeeding years, Litton and a number of other
companies joined the countertop microwave oven market.

By the end of 1971, the price of countertop units began to decrease and
their capabilities were expanded.




For the Love of Cooking
The long history of Tappan appliances began in 1881, in Bellaire, Ohio as
the Ohio Valley Foundry Company when founder W.J. (Bill) Tappan began
selling cast-iron stoves door-to-door from a horse-drawn wagon. The company
was moved to Mansfield, Ohio in 1889 under the name Eclipse Stove Company.
Later the name changed to Tappan Stove Company.

As the company grew, so did its reputation for cooking excellence. During
World War I and II, Tappan was called upon by the government to develop
cooking equipment for the military.

Tappan was responsible for several range "firsts" in the industry including
an all-porcelain range available in various colors in the 1920's and
electric ignition for gas ranges in the 1960's. In 1955, Tappan
revolutionized the way the world would cook with the introduction of the
first microwave oven model for home use. The first production Tappan
microwave model -- a 24-inch built-in oven -- operated on 220 volts and
retailed for about $1,200. Ten years later Tappan introduced a deluxe
30-inch wide cooking center - the first conventional range and microwave
available in a single unit.  The Tappan Company became associated with AB
Electrolux in 1979.





In 1947, Raytheon demonstrated the world's first microwave oven and called
it a "Radarange."3 The first microwave ovens cost between two and three
thousand dollars and were sold primarily to the commercial marketplace. By
the early 1950s, U.S. appliance makers began showing interest in the
microwave oven since it had the ability to provide more flexibility to the
consumer by reducing the time needed to cook different meals. In 1955, the
Tappan Stove Company--under a licensing agreement with Raytheon--brought the
first consumer microwave ovens to the U.S. market with a price tag of
$1,300. These first consumer microwave ovens were more compact and less
powerful than their "Radarange" predecessors and reflected only modest sales
at their price range.

In 1965, Raytheon acquired Amana Refrigerators, Incorporated--an appliance
maker with a well established distribution channel--and, in 1967, introduced
to the U.S. market the first "countertop" model of microwave ovens that sold
for $495 retail and were smaller, safer and more reliable than previous
models. By 1986, 25 percent of U.S. households owned a microwave oven, up
from less than one percent in 1971.4 Assuming microwave oven penetration
into U.S. households was constant during this 15 year period, about 12 to 13
percent of U.S. households would have owned a microwave oven in 1978.

The microwave oven was introduced into the CPI sample in 1978.5 Since its'
inception to the CPI, microwave ovens have been represented in three item
stratum price indexes over three CPI revisions:

With the release of the revised CPI in January 1978, microwave ovens became
part of the Stoves, dishwashers, vacuums, and sewing machines item stratum
price index. The index level for this item stratum in December 1977 was
100.0 (its base year), and increased to 117.4 by December 1986 -- an overall
price index increase of 17.4 percent for the 9 year period.
With the release of the revised CPI in January 1987, microwave ovens became
part of the Stoves, ovens, dishwashers, and air conditioners item stratum
price index. The index level for this item stratum in December 1986 was
100.0 (its base year), and decreased to 91.6 by December 1997 -- an overall
price index decline of 8.4 percent for the 11 year period.
Finally, with the release of the revised CPI in January 1998, microwave
ovens became part of the Major Appliances item stratum price index. The
index level for this item stratum in December 1997 was 100.0 (its base
year), and through March 2000 is 97.9 -- an overall price index decline of
2.1 percent for the most recent two and a quarter year period.
Today, more than 90 percent of U.S. households own a microwave oven.6 As
consumer expenditures on microwave ovens have increased through time in the
U.S. economy, so too have their representation in the CPI -- currently
accounting for 11 percent of the weight in the Major Appliances item stratum
price index.

Microwave ovens were selected as a product that would benefit from hedonic
regression modeling since manufacturers provide a vast range of sizes,
configurations, and features. In the Consumer Digest's 2000 Annual Buying
Guide, the latest annual review on microwave ovens notes that

"today's ovens are safer, more convenient and offer a wealth of advanced
features. Current models produce about 10 percent more power than previous
versions and many include electronic sensors along with automatic controls
for easy programming of cooking commands. They also come in a greater
variety of sizes. From tiny no-frills models to sophisticated ovens large
enough to handle full-size meals, microwave ovens are ready to meet a broad
range of (consumer) needs. The best part is that some of these advanced
features are now available at lower prices."7

These newer models of microwave ovens are included for price index
calculations only if older models being used in the price index sample are
no longer available (in the CPI outlets) for CPI pricing. When a newer model
replaces an older model in the CPI, the price change that is used in the
index is referred to as substitution price change. Substitution price change
can be either "pure" (directly compared or quality adjusted) or "imputed"
(non-comparable).

From August 1999 through April 2000 Major Appliances employed, on average,
215 price changes to calculate its U.S. level monthly price index (see
attachment 2). Approximately 10 percent, or 22, of these price changes were
substitution price changes. In comparison, microwave ovens accounted for, on
average, 39 of the 215 price changes used to calculate Major Appliances
index, and averaged (just) four substitutions per month from August 1999
through April 2000.

Data

Sample selection for the Hedonic Model

The official CPI sample of microwave oven prices used to calculate the Major
Appliances CPI was too small for hedonic regression estimation. Using a
process that mimics the official CPI sample selection process, an additional
sample of 195 consumer businesses, or outlets, was chosen to augment the
official CPI sample for microwave ovens. This additional outlet sample was
used to select a sample of microwave oven prices. The supplementary sample
was used only for estimating the hedonic regression model for microwave
ovens.8

CPI field economists were instructed to collect a total of 390 microwave
oven prices in the sample of 195 additional outlets. Individual microwave
oven brand and models were selected by grouping all microwave ovens in a
particular outlet into two groups--the "standard" microwave ovens and
"better model" or higher quality microwave ovens. Once categorized into
these two groups, the CPI field economist was instructed to select a "good
selling" microwave oven from each of the "standard" and "better model"
groups.

About 73 percent of the additional sample price quotes that were collected
for microwave ovens had price and characteristic data that could be used in
the regression model. The most common reason that CPI field economists could
not collect the additional sample price quotes for microwave ovens was
respondent refusal.9 A total of 381 prices--and characteristic
descriptions--were used to estimate the hedonic model for microwave ovens.
This total sample consists of 98 official CPI observations and 283
additional sample observations.

Price and Characteristic Data for the Hedonic Model

All of the price and characteristic data used for the microwave oven hedonic
model was captured on CPI data collection documents, or checklists, for this
item (see last attachment).

The prices that were collected for the microwave oven sample represent
"retail offer" prices. As the name suggests, a retail offer price represents
what a consumer business is willing to sell an item for which may, or may
not, differ from the transaction price--what a consumer actually paid for
the item. Retail offer prices, like transaction prices, may change through
time depending on whether the item being sold is offered at a "regular"
price or a "sale" price.

The set of quality attributes collected for each of the 381 microwave ovens
in the sample are represented on the CPI checklist for this item (see last
attachment). In each of the quality characteristic categories, CPI field
economists selected the specific characteristic element that best described
the item they were pricing. For example, if an Amana countertop model with a
(oven) capacity of 1.6 cubic feet and cooking power of 1000 watts had been
selected by the field economist, this would be designated on the CPI data
collection document by selecting the A1, B1, D3, and E2 specification
elements--see last attachment.

When possible, secondary source information such as manufacturer websites
and consumer information magazines--including Consumer Digest's and Consumer
Reports--were used to verify the accuracy of the characteristic data
collected on the CPI checklist for microwave ovens. Overall, the CPI field
economists were able to provide complete, consistent, and accurate
descriptions for most microwave oven observations included in the hedonic
regression sample.

Model

The hedonic model that was specified for microwave ovens in this study
resembles the categories of quality characteristics that are presented on
the CPI checklist for this item (see last attachment):

ln P = b0 + b1 Type + b2 Capacity + b3 Brand + b4 Oven Controls + b5
Features + b6 Control + e.

The bi's in this model represent the effect of the characteristics on the
natural logarithm of price. The CPI prices that were collected in this
sample represent "retail offer" prices, and approximately 37 percent of
these prices were collected "on sale." The mean price for all microwave
ovens in the sample was $207.75. The mean price for "regular" priced
microwave ovens in the sample is $214.77 and the mean price for "sale"
priced microwave ovens is $195.61. Since type of price (that is, regular or
sale) is thought to have an impact on the overall price level, a dummy
variable for sale price was included in the model to capture this effect,
and its expected coefficient sign was negative.

A priori expectations about which microwave oven characteristics influence
price were developed, when possible, on industry information, manufacturer
websites, and consumer information magazines.

Microwave Oven Types

Basically, two types of microwave ovens are sold in today's appliance
market. Countertop models are more frequently advertised by manufacturers
and retailers and accounted for approximately 76 percent of the microwave
ovens in the sample. Consumers who have smaller kitchens and lack counter
space can opt for an over-the-range model--this type of microwave oven
accounted for the remaining 24 percent of the microwave oven sample. All
over-the-range models come with an installation kit for mounting. In
addition, since over-the-range models take the place of a range or stove
exhaust hood, all come with a ventilation fan that exhaust both the range
and microwave oven cooking gases. The mean prices for the 288 countertop
models and 93 over-the-range models in the hedonic sample were $140.64 and
$416.31, respectively. By way of comparison, a December 1999 Consumer
Reports study on microwave ovens found that the countertop ovens they tested
sold for $200 or less while over-the-range models typically sold for about
$350 to $450.10 Dummy or indicator variables were created for both types of
microwave ovens. The over-the-range variable was included in preliminary
models and was expected to have a large, positive impact on price.

Both the size and cooking power characteristics of microwave ovens are also
assumed to have a significant impact on microwave oven prices. Manufacturers
and retailers advertise size in terms of cubic feet and cooking power in
terms of maximum watts. Both size and cooking power assume a wide range of
numeric values--see the CPI checklist for microwave ovens (last attachment).
To accommodate this wide range of values, continuous variables were created
for both cavity cubic feet and maximum watt cooking. It was assumed that the
price of the microwave oven would increase with increasing values for one or
both of these variables. For example, a 2.0 cubic foot oven with 1100 watts
of cooking power is assumed to sell for a higher price than a 0.8 cubic foot
oven with 700 watts of cooking power ceteris paribus.

A preliminary model was specified with two dummy variables, sale price and
above stove, and two continuous variables, cavity cubic feet and maximum
wattage (see attachment 3, Iterative regression 1). This model specification
proved to explain a significant portion of the variation in (the natural log
of) price with an R2 of slightly more than 82 percent. While the magnitude,
direction and significance of the parameter estimates in the preliminary
model generally conformed with a priori expectations, somewhat low tolerance
values for the cavity cubic feet and maximum wattage variables indicated
that multicollinearity might be present in the model. Further investigation
revealed that the pearson correlation coefficient, or measure of
collinearity, for these two variables was positive and strong at 0.61--they
tend to move together and can serve as a proxy for each other. The existence
of multicollinearity causes the standard errors of the correlated variables
to increase and the associated parameter estimates to be imprecise.11
Subsequent variations of this preliminary model--not included in Attachment
3--revealed that the variable for cavity cubic feet provided a better
overall fit for the model and was included in the final model.

Microwave Oven Brands

Brand was the next category of quality characteristics used to specify the
hedonic model for microwave ovens. In addition to the 9 brands listed on the
CPI checklist for this item (see last attachment), dummy or indicator
variables were created for 7 additional brands that were collected in the
"Other brand" specification element--see B99 specification element on the
CPI checklist. Separate variables were created for each brand rather than
trying to categorize them into "high quality," "medium quality," and "low
quality" groups since little secondary source information was available
about ranking quality of microwave ovens by brand.

As an established leader in the production and distribution of microwave
ovens, Amana was thought to have a positive impact on price. Inclusion of
the brand variables with the previous model specification--see attachment 3,
Iterative regression 2--yielded a slightly better fit with an R2 of 87
percent. In the absence of strong a priori about brands, low tolerance
values and statistically insignificant parameter estimates led to the
exclusion of some of the brand name variables. Subsequent variations of this
preliminary model--not included in Attachment 3--and inclusion of other
quality category variables on the CPI checklist led to the following brands
being included in the final model: Amana, Kitchenaid, General Electric,
Whirlpool, Samsung, Admiral, Emerson, and Sanyo.

Interestingly enough, the recent report on the CPI by The Conference Board,
notes that "In existing products, probably the biggest problem in quality
change that the CPI never recognizes (is) the subtle, often gradual changes
that are difficult to detect and to measure. These would include for
example,.reduced incidence of repairs to household appliances."12
Coincidentally, a December 1999 Consumer Reports study on microwave ovens
supplies data about percent of "repairs and serious problems" for microwave
oven brands (see Attachment 4). This data was compared to the implicit price
values estimated in the final hedonic regression model for microwave ovens
to see if consumer valuation of brand was consistent across studies. Of the
eight brands included in the final hedonic model and the 12 brands included
in the Consumer Reports study, six brands were common to both studies. The
following is an ordinal ranking of brand value for both studies results

  Consumer Reports Percent of Repairs Brands Hedonic Brand Variables
Ranking     Ranking
1 Samsung Amana A
2 Sanyo General Electric B
3 Emerson Whirlpool C
4 General Electric Samsung D
5 Whirlpool Emerson E
6 Amana Sanyo F

1 = least repairs
6 = most repairs
A = most positive contribution to price
F = most negative contribution to price
A cursory comparison of the two studies reveals that brands in the hedonic
model with the most positive implicit price values have more "repairs and
serious problems" while brands with the most negative implicit price values
have less "repairs and serious problems." This (limited) comparison of brand
quality seems to suggest that repair histories do not (in and of themselves)
influence relative price levels for microwave oven brands.

Microwave Oven Controls

Oven Control characteristics in the "Type of Controls," "Number of Power
Settings," and "Number of Pre-Set Programming Stages" specification
categories on the CPI checklist (see last attachment) were next considered
in specifying the hedonic regression model for microwave ovens.

In the "Type of Controls" specification category, dummy variables were
created for electronic controls and manual controls. While most of the
microwave ovens in today's appliance market possess touch sensitive or
electronic controls, some manufacturers still offer models with push button
or rotary dial manual controls. Almost 95 percent of the microwave oven
sample contained microwave ovens with electronic controls, but a variable
for manual controls was included in a preliminary model--see attachment 3,
iterative regression 3--since a priori expectations were that only inferior
quality models possessed this type of control. As expected, the parameter
estimate for the manual controls variable was negative, remained robust in
subsequent regressions, and was included in the final model.

Most microwave ovens can control the (total) cooking power or wattage--most
commonly this feature is given in 10 percent increments ranging from a low
power of 10 percent to a high power of 100 percent. The December 1999
Consumer Reports study on microwave ovens notes that "most models" have 10
power settings.13 Similarly, most of the observations in the microwave oven
sample were described as possessing 10 power settings. Other values
collected for this specification element were "manual setting," "not
specified," and "not applicable." Since 10 power settings was the only
specification element listed in the "Number of Power Settings" category and
no other meaningful variables could be created, the 10 power settings
variable was not included in the final model.

A less advertised characteristic on microwave ovens is the "Number of
Pre-Set Programming Stages." This oven control allows the user to pre-set or
pre-program the microwave oven to cook food at a certain power setting for a
certain length of time and then automatically switch to a different power
setting for another length of time. An example of this feature might be
programming the microwave oven to cook a food for two minutes at defrost,
three minutes at a high temperature and one-minute at a low temperature.

It was assumed that microwave ovens with a higher number of sequential
cooking stages offered more convenience and greater value to the consumer
than microwave ovens with a lesser number of sequential cooking stages
ceteris paribus. However, the December 1999 Consumer Reports study on
microwave ovens notes that "most models can be programmed to cook for at
least two sequential stages and up to about 100 minutes in all."14

Dummy variables were created similar to the specification elements on the
CPI checklist (see last attachment) for the "Number of Pre-Set Programming
Stages." In particular, variables for 4 stage, 3 stage, and 2 stage
programming were tested in a preliminary model--see attachment 3, iterative
regression 3. While the parameter estimates for 3 stage and 2 stage
programming were marginally negative and statistically insignificant, the
parameter estimate for 4 stage programming was positive and statistically
significant. Subsequent variations of this preliminary model--not included
in Attachment 3--and inclusion of other quality category variables led to
the 4 stage programming variable remaining in the final model.

Microwave Oven Features

Manufacturers and retailers of microwave ovens offer and advertise a variety
of features on their products. Microwave oven features are represented in
the "Cavity Features," "Cooking Features," and "Programming Features"
specification categories on the CPI checklist (see last attachment) for
microwave ovens. Dummy or indicator variables were created for all
characteristics in these specification categories. Each category of
variables was tested to see whether the overall fit of the model could be
enhanced. Basic preliminary models used to test each category of features
are presented in Attachment 3, iterative regressions 4 through 6.

Of the 19 dummy variables that were created for the three categories of
feature specifications, only four of these variables--built-in sensor, auto
sensor, convection cook, and convection broil--were used in the final
regression model for microwave ovens. In addition, since these
characteristics were not clearly delineated on the CPI checklist--or in the
product descriptions at the retail outlets--the built-in sensor and auto
sensor variables were combined into one variable called sensor and the
convection cook and convection broil variables were combined into one
variable called convection.

Sensor technology helps prevent undercooking or overcooking food. Through
measures such as gauging the release of steam as food heats, sensor(s)
detect the degree to which food has cooked and adjusts heating time or
cooking power accordingly. This feature is more common in today's microwave
ovens and was reported in 54 percent of the 381 microwave ovens included in
the sample. It was expected a priori that this feature would have a mild to
moderate positive influence on price. Since the parameter estimate for
sensor was positive, statistically significant, and remained robust in
subsequent variations of preliminary models--included and not included in
Attachment 3--the sensor variable remained in the final model.

Microwave ovens with convection cooking rely on a fan that gently circulates
heated air over and around the food, producing golden brown exteriors and
moist interiors. Convection microwaves ovens can function as normal
microwaves ovens, as a regular convection oven, or a combination of the two
at once. This feature was reported for about five percent of the microwave
oven sample and was expected a priori to have a strong positive influence on
price. Since the parameter estimate for convection was positive,
statistically significant, and remained robust in subsequent variations of
preliminary models--included and not included in Attachment 3--the
convection variable remained in the final model.

Most other microwave oven feature variables were excluded from the final
regression model because of their poor performance in preliminary and
subsequent regression models. For example, all of the feature parameter
estimates in the "Programming Features" specification category consistently
reflected small nominal impacts on price and were statistically
insignificant. These kinds of features are frequently touted by retailers
and manufacturers as value enhancing but typically do not contribute
(substantially) to the price--or value--of microwave ovens that possess
them.

Microwave Oven Miscellaneous Specifications

Other CPI checklist specification categories that were examined for hedonic
model development included optional installation kits for countertop models
as well as delivery charges. These CPI categories were found to be, for the
most part, not representative of the microwave oven market. On the few
occasions that either the cost of optional installation kits or delivery
charges were reported with the price of the microwave oven, these additional
charges were "backed out" of the overall price so that just the price of the
microwave oven was reflected in the sample data.

Similarly, the manufacturer warranty specification category on the CPI
checklist could not be utilized in specifying the hedonic model for
microwave ovens. Almost all microwave ovens that are sold in today's market
come with a standard one year parts and labor manufacturer warranty. Since
this was the predominant type of manufacturer warranty captured in the
microwave oven sample, it could not be used in the final regression model.

Finally, the country of origin specification category on the CPI checklist
was tested to see if the hedonic model for microwave ovens could be fitted
with any of these variables. Country of origin represents the country in
which the product--in this case microwave ovens--was constructed and is
believed to serve as a proxy for the quality of a good and service. In the
sample used in this study, over 90 percent of the 381 microwave ovens were
constructed in six different countries. In particular, microwave ovens
constructed in the USA, Japan, Korea, China, Singapore, and Thailand
accounted for 42, 8, 16, 6, 10, and 9 percent of the sample data,
respectively.

In the absence of a priori about country of origin, low tolerance values and
statistically insignificant parameter estimates led to the exclusion of most
of the country of origin variables. Only the parameter estimate for Korea
was statistically significant and remained in the final regression model.

Control Variables

Various control variables were tested representing region of the country,
city size, and type of business as defined in the CPI. The most consistently
performing and statistically significant control variables that were
included in the final microwave oven model were appliance stores, warehouse
outlets, and A size cities (populations 1,000,000 or greater) in the
Northeast and West regions. The purpose of control variables are to minimize
the unexplained variation that might remain after the model has been fitted
with price determining characteristics.

Attachment 3, iterative regressions 1 through 7, are included in this study
to give the reader a sense of how the hedonic model for microwave ovens
progressed as more categories of CPI variables were considered for model
inclusion. Iterative regressions--both included and not included in
Attachment 3--were performed until the remaining parameter estimates in the
model below exhibited relative robustness to the inclusion and deletion of
other variables not included. The direction and magnitude of the parameter
estimates seem reasonable, and the statistics pertaining to fit,
significance, and collinearity are within generally accepted limits.

Variable Category
 Variable Name
 Parameter Estimate
 T Statistic
 Tolerance

  Intercept 4.410015
 108.817

Type of Price: Sale Price -0.077066
 -4.122
 0.8536454

Oven Type: Above Stove or Range 0.938410
 40.775
 0.7101415

Table Top or Countertop Base

Brand: Amana 0.457959
 8.997
 0.8134151

Kitchenaid 0.453339
 5.387
 0.9442307

General Electric 0.185056
 6.599
 0.7371506

Whirlpool 0.130882
 3.063
 0.8452731

Other brands not listed Base

Samsung -0.122763
 -2.628
 0.8414810

Admiral -0.173660
 -2.686
 0.9210839

Emerson -0.195389
 -2.806
 0.9242426

Sanyo -0.228115
 -2.370
 0.9594545

Oven Cavity Capacity
(in cubic feet)
 Capacity (per cubic foot) 0.336293
 12.776
 0.7596359

Type of Controls: Electronic or Touch Sensitive Base

Manual or Push Button -0.194143
 -4.799
 0.8532257

Memory Programming:
(number of stages)
 4 Stage Programming 0.101837
 4.167
 0.9007655

No Stage Programming  Base

Features: Convection Cook/Broil 0.329675
 7.652
 0.8778186

Auto or Built-In Sensor 0.057433
 3.127
 0.8274627

Country of Origin: Other countries not listed Base

Korea -0.069286
 -2.534
 0.7001641

Type of Outlet: Appliance outlet 0.084715
 4.072
 0.6637763

Warehouse outlet -0.223390
 -2.620
 0.9197068

Control Variables: A size city/Northeast region  0.062619
 2.265
 0.8554760

A size city/West region 0.073488
 2.921
 0.8623244

R2=0.9168 Adjusted R2=0.9121 F value=198.783 Number of observations=381



Hedonic Quality Adjustments and Price Index Simulation

BLS employs the 'matched model' method of quality adjustment in its official
indexes. This method controls for quality changes based on the difference in
product specifications or characteristics between two items when a
substitute observation, or quote, occurs in the price index sample. It is
important to note that under the 'matched model' approach only substitution
price changes, or quotes, are eligible for hedonic quality adjustments.

During the study period from August 1999 through April 2000, a total of 39
microwave oven substitution price changes--an average of (just) four per
month--occurred in the Major Appliances price index sample. For each
microwave oven substitution price quote, differences in the specification or
characteristic data of the old and new items were identified to see if the
parameter estimates in the hedonic model could be utilized to quality adjust
the official price change.

Approximately 54 percent, or 21, of the 39 microwave oven substitute price
changes in the study were quality adjusted based on specification
differences between substitute items. The most common type of quality
adjustment performed for microwave ovens in this study was for changes in
capacity--represented in more than 80 percent of the quality adjusted
(substitution) prices. Other quality differences such as changes in sensors,
type of controls, stage programming, and country of origin specifications
were also adjusted for in the hedonic indexes. The table below provides a
summary of mean price changes for microwave oven substitutions in both the
official and quality adjusted Major Appliances indexes.

Summary of mean price changes for microwave oven substitutions

Type of Substitution Published Index Number Mean Price Change Quality
Adjusted Index Number Mean Price Change
All Substitutions 39 +4.05 % 39 +1.31 %
Comparable 34 +3.88 % 18 +1.42 %
Quality Adjusted 0 0.00 % 21 +1.22 %
Non-comparable (Imputed) 5 +5.16 % 0 0.00 %

Substitution price change can be either "pure" (directly compared or quality
adjusted) or "imputed" (non-comparable). The empirical results above reveal
that not only was all "imputed" price change replaced with "pure" price
change in the quality adjusted index but that almost half of the
"comparable" substitution price changes in the published index were made
"more comparable or pure" in the quality adjusted index. In addition, the
mean price changes for each group of substitutions are lower after quality
adjustment than in the published indexes. This result implies that some
price increases due to quality change may have been reflected in the
published indexes and caused them to be higher.

Monthly price indexes were simulated for August 1999 through April 2000 to
determine the impact of quality adjusted microwave oven substitution price
changes on the Major Appliances CPI. First the published indexes, or without
quality adjustment indexes, were recreated by Statistical Analysis System
(SAS) computer programs using historical CPI data. The duplication of the
published indexes provides a "control" environment from which the quality
adjusted Major Appliances indexes can be compared.

U.S. level price indexes, such as those examined in this study, were
obtained by summing elementary, or local area, price indexes using
aggregation weights derived from the Consumer Expenditure Survey (CE). The
results of the index simulation, with and without hedonic quality
adjustments, are presented in Attachment 5. In addition, graphical
representations of the simulated price indexes for Major Appliances are
presented in Attachments 1 and 6.

Attachments 1 and 5 indicate that the U.S. CPI for Major Appliances would
have increased 0.6 percent instead of the official index increase of 0.8
percent if hedonic quality adjustment methods had been applied to microwave
oven (substitution) price changes from August 1999 through April 2000. Given
the small representation that microwave oven substitution price changes had
in the Major Appliances CPI during the study period--an average of just four
price quotes per month--the impact at the U.S. level was relatively large.
In addition, the empirical results suggest that the official index for Major
Appliances rose more rapidly than if hedonic quality adjustments had been
applied to microwave oven substitution price changes during the study
period.

Attachment 6 illustrates the differences between the published and quality
adjusted indexes on a monthly basis for the nine-month period in the
study--August 1999 through April 2000. Comparisons of the quality adjusted
and published Major Appliances price indexes reveal the following: In months
when the index increased, the quality adjusted index rose faster than the
published index in one month (August), both indexes rose at the same rate
for two months (September and April), and the quality adjusted index rose
slower than the published index in the remaining two months (November and
March). In addition, in the remaining four months when the index fell, there
were two months (December and February) in which both indexes fell at the
same rate and two months (October and January) in which the quality adjusted
index fell faster than the published index.

Two factors may account for the empirical results reported on in this study:

First, the small number of microwave oven substitution price quotes that
were quality adjusted may have been to few to make a (representative) impact
on the Major Appliances indexes in 1999-2000. Microwave oven substitution
price quotes accounted for less than two percent--on average, four of 215
prices--of the monthly CPI sample for Major Appliances from August 1999 to
April 2000 and only half of these microwave substitutions had their price
changes adjusted using the hedonic technique.

Second, CPI data collection procedures direct BLS field economists to select
substitution or replacement items that are the "same or similar" in quality
as the old item they had been pricing. This procedure tends to yield
substitution price quotes that have fewer bona fide characteristic changes
(between substitute items) than might have occurred if the procedures had
instructed field economists to collect (substitute item) data for the most
technologically advanced or best selling microwave ovens.

This second factor is important in developing expectations as to the
direction and magnitude of quality adjusted indexes when compared to indexes
without quality adjustments for consumer appliance goods. If BLS field
economists were instructed to substitute to the best selling or most
technologically advanced microwave oven products, one might expect that the
Major Appliances indexes with and without hedonic quality adjustments would
diverge further (than in this study) from each other.

BLS is considering additional ways to more quickly bring a greater number of
new good quotes into the CPI rather than just relying on the current
Telephone Point of Purchase Survey (TPOPS) rotations. Lane (2000) provides a
summary of additional methods for bringing new goods into CPI samples more
quickly.15 In particular, both the directed item rotation and directed item
replacement methods of updating price index samples instruct field
economists to "select a new set of (sample) items representing a more recent
period's purchases" for target groups of goods or services that are
constantly changing in quality with successive generations of product
introductions.

Microwave Oven Characteristics That May Be Important in Future Models

Future generations of microwave ovens could experience rapid quality change
if the growth of "smart" appliances becomes popular with consumers. Recent
studies indicate that within ten years, 98 percent of (consumer) appliances
will have computer processing capability and be networked and controlled
from remote locations--such as the office or cell phone.16 The movement to
embed networking capabilities into consumer appliances for the home has been
hailed as a major business opportunity for appliance manufacturers,
technology companies and (internet) service providers alike. To date,
however, these smart appliance products have been costly and used mainly in
demonstrations at trade shows and concept homes.17

Currently, food scientists have created several smart microwave ovens that
recognize the food to be prepared and offer advice on recipes and nutrition.
In particular, food scientists maintain that the next generation of
microwave ovens will incorporate the following "smart" features: 18

Microprocessors functioning as the "brains" of high-tech ovens. Developed in
collaboration with electronics manufacturer's, the microprocessor will
control the oven's electronics, such as turning the unit on for the correct
length of time and at the proper power setting. It will also be programmed
to interpret and analyze food science information, using the expert
knowledge base of many food science professionals. The smart microwave can
inform you about ingredients and make recommendations to improve your
health.
Bar codes and scanners will be the tools for transferring product
information into the microwave's brain. Researchers are working with
bar-code scanner makers to develop two- and three-dimensional bar codes,
which will be capable of storing considerably more information than the
current one-dimensional codes allow.
Voice recognition will allow consumers to customize the operation of their
appliance. For example, since the degree to which food is cooked varies with
the preference of the individual, the oven could be told to cook a steak
until it is medium rare rather than well done. Simply tell the microwave
your name and the next time that product is cooked, the microwave will
modify the cooking instructions to your liking. Have a food allergy? Are you
diabetic? The microwave will check the ingredients against your personal
profile and send a warning if you shouldn't be eating this food.
Internet access will keep microwave ovens informed on the latest cooking
instructions and nutritional information from web sites. Other internet oven
features will include warning consumers quickly about important news such as
product recalls; letting the microwave automatically send your grocery order
to the supermarket each week; and keeping track of food ingredients consumed
for a report to your physician.
Specific examples of "smart" microwave ovens that have been developed to
date include the following:

Sharp Electronics Corp. has developed a convection microwave oven that can
download recipes from the company's Web site. The microwave then gives
step-by-step instructions on preparing the meal and automatically sets the
time, adjusts the power and does the roasting, baking, broiling or grilling.
Sharp began selling its product in Japan in October (1999) and hopes to
introduce it in the U.S. in early 2001. Sharp's new oven sells for about
$1,000 in Japan.19
Samsung has developed a microwave that reads directions on pre-packaged food
when the package's bar code is swiped across a special sensor. The oven,
developed with Rutgers University researchers, will then contact the
manufacturers' Internet site, read the directions and cook the meal.
Samsung's bar code-reading oven will likely cost less than $500 when it hits
the U.S. market sometime in early 2001.20

Panasonic's Virtual Chef Interactive Microwave oven can record a recipe from
a television cooking show or download it from the Internet, and then display
it later for consumer viewing on a screen. Or, on that same screen, you
might input a list of the items you have in your refrigerator and the
microwave could suggest a recipe for using them.21
General Electric's microwave oven voice-activated Advantium(TM) oven with
Speedcook technology that recognizes and responds to voice commands,
understands 250 regional accents, can learn new languages, and can
self-diagnose problems and alert the GE Answer Center for parts and
service.22
General Electric's microwave oven that reads Universal Product Codes (UPC)
and then automatically sets the proper cooking cycle, detects ingredients
which consumers may be allergic to, displays the calorie content of the
dish, and can self-diagnose problems and alert the GE Answer Center for
parts and service.23
Many manufacturers and retailers of consumer appliances are optimistic that
these "smart" microwave ovens--and other "smart" appliances--will become
popular with consumers when they start to become available to U.S. consumers
in early 2001. Their optimism is based, in part, on "the swift acceptance of
the Internet among consumers and because of the soon-to-be-widespread
availability of so called 'broadband' internet access, where home users will
have swift connections that eliminate the delays and slow downloads of
standard modem connections." 24

Many retailers are expected to aggressively advertise smart appliances when
they become available in the U.S. economy sometime in early 2001. For
example, Sears intends to create room settings inside many of the 860
full-line, mall-based Sears stores to explain to consumers the value-added
properties of these new (smart appliance) products and services. In
addition, these new smart appliance products will be demonstrated so
consumers can relate them to their own living rooms and kitchens. Recently,
a spokesperson for Sears indicated that the company "views the Internet as a
huge catalyst that will drive transformation in the home, and we intend to
position ourselves to play whatever role is necessary." 25

"Currently, the electronics industry is mulling over two emerging, would-be
standards for home networking of smart appliances, both based on software
widely used in personal computers and across the Internet. One of the home
networking standards--known as Universal Plug and Play (UPnP)--is being
developed by a team of appliance hardware and software manufacturers headed
by Microsoft. The competing platform--a language from Sun Microsystems
called Jini--has the same goals as UPnP, which is to provide a standard for
networking home appliances. The first generation of both types of smart
appliances should be hitting the market in early 2001."26

In short, internet technology is making a whole new line of smart appliances
a possibility for consumers. However, these future smart appliances might
hold some of the same compatibility problems that computer users endure
today. For example, one might be able to turn on an Jini-equipped home
security system with a Jini cell phone--but one might not be able to power
up an UPnP speaking microwave oven with it. Industry analysts think that
there will probably be bridges to connect the two platforms where customers
demand it. For example, one might have to work around a compatibility
problem by using an Jini-equipped cell phone to turn on your UPnP speaking
microwave oven through a personal computer that speaks both languages.27

Technical issues aside, it seems clear that U.S. retailers will be bringing
these new smart appliances to the U.S. marketplace for consumer purchase in
the very near future. If smart appliances become popular with consumers when
they are available for purchase, BLS should try and include these new
products in the Major Appliances CPI soon after their introduction so that
any rapid price movements--sometimes associated with the introduction of new
products--are not excluded from the CPI. Representation of smart appliances
in the Major Appliances CPI should be proportional to consumer expenditures
on these new products vis--vis consumer expenditures on all major
appliances. If consumer expenditures on smart appliances increase through
time, so should their representation in the CPI.



Conclusion

The microwave oven hedonic model developed in this study represents a
snapshot of how the average consumer values quality for microwave ovens in
today's appliance market. Iterative regressions for microwave ovens are
included in this study to give the reader a sense of hedonic model
development as more categories of CPI characteristics were considered for
model inclusion. The current rate of (quality) change for this consumer
appliance product is not as fast as other retail products--for example,
cellular and wireless telephones or DVD players in the consumer electronics
market.

The parameter estimates in the final hedonic model for microwave ovens
exhibit relative robustness to the inclusion and deletion of other variables
not included in the final model. The direction and magnitude of the
parameter estimates seem reasonable, and the statistics pertaining to fit,
significance and collinearity are within expected limits. It should be used
in conjunction with commodity analyst judgment to quality adjust CPI quote
level substitution data when possible.

Future generations of microwave ovens could experience rapid quality change
if the growth of "smart" appliances becomes popular with consumers of this
appliance. BLS should include these new smart products in the Major
Appliances CPI soon after their introduction so that any rapid price
movements--sometimes associated with the introduction of new products--are
not excluded from the CPI. Representation of smart appliances in the Major
Appliances CPI should be proportional to consumer expenditures on these new
products vis--vis consumer expenditures on all major appliances.

Notes

Acknowledgments: the author wishes to thank Nicole Shepler, Walter Lane,
Rick Devins and John Greenlees for helpful suggestions.
Silver (1998) notes that there are " three different approaches to the use
of hedonic regressions for measuring quality-adjusted price changes. The
first complements the existing matched models approach generally used by
statistical offices, by helping to identify key quality characteristics and,
when matches are not available, providing adjustment factors to allow 'like'
to be compared with 'like'. The second is the direct method, found in the
academic literature, which uses the coefficients on the dummy variables for
time in an hedonic regression as estimates of quality-adjusted price
changes. The third method requires quite extensive data for the compilation
of 'exact' hedonic price indices as defined from economic theory."--Page 1
from reference below.
Source, "Raytheon Historical Backgrounder," under the Microwave Cooking
heading on page 3;
Source, "Technology and Economic Growth in the Information Age," National
Center for Policy Analysis, under the New Technologies Spread Faster heading
on page 6; http://www.ncpa.org/bg/bg147/bg147.html (accessed 3/21/2000).
Source, "Toward A More Accurate Measure Of The Cost Of Living," The Final
Report to the Senate Finance Committee of the Advisory Commission to Study
the Consumer Price Index," under the New Products Bias heading on page 22;
http://www.ssa.gov/history/reports/boskinrpt.html (accessed 4/7/2000).
Source, Cox and Alm (1997), "Time Well Spent: The Declining Real Cost of
Living in America," Federal Reserve Bank of Dallas--1997 Annual Report; see
Exhibit 8 on page 22;
http://www.dallasfed.org/htm/pubs/pdfs/anreport/arpt97.pdf (accessed
12/8/1999).
Source: "Microwave Ovens" in the Consumer Digest's 2000 Annual Buying Guide,
November/December 1999, pages 106-107.
For additional information about the hedonics project on quality change in
the U.S. CPI see Fixler, Fortuna, Greenlees and Lane (1999), "The Use of
Hedonic Regressions to Handle Quality Change: The Experience in the U.S.
CPI," Presented at the Fifth Meeting of the International Working Group on
Price Indices; August 1999; Pages 1-20. http://www.statice.is/ottawa/bls.rtf
(accessed November 1999).
The collection of hedonic price data by CPI field economists coincided with
the collection of official CPI price data and TPOPS price data. Reports from
the field indicated that some respondents simply did not have the time to
assist CPI field economists with hedonic data collection.
Source: "Microwave Ovens Test: Faster, smarter, bigger," in Consumer Reports
December 1999 issue, page 28.
Source: Shepler (2000) in "Developing a Hedonic Regression Model For
Refrigerators in the U.S. CPI," under the Data and Regression Model
http://www.bls.gov/cpirfr.htm (accessed 8/16/2000)
Source: "Measuring Prices in a Dynamic Economy: Re-Examining the CPI," The
Conference Board, under the Quality Bias heading on page 19; Special Report
1260-99-SR, September 17, 1999.
Source: "Microwave Ovens Test: Faster, smarter, bigger," in Consumer Reports
December 1999 issue, page 30.
Source: "Microwave Ovens Test: Faster, smarter, bigger," in Consumer Reports
December 1999 issue, page 30.
See Walter Lane, "Addressing the New Goods Problem in the Consumer Price
Index," Presented at the Issues in Measuring Price Change and Consumption
Conference, Bureau of Labor Statistics, Washington, D.C., June 5-8, 2000,
pages 1-26.
Source: "GE Unveils Concept 'Smart' Appliances at NAHB," Yahoo Finance--PR
Newswire; January 14, 2000, pp. 1-2;
http://biz.yahoo.com/prnews/000114/ky_ge_new__1.html (accessed January 19,
2000).
Source: "Smart Appliances Hit The Net," TechWeb News / Technology News;
January 18, 2000, pp. 1-3;
http://www.techweb.com/wire/story/TWB20000118S0032 (accessed May 5, 2000).
Source: "New Wave Microwave," Science and Technology News NetworkTm; The
Center for Science and the Media, and ScienCentral, Inc.; June 23, 1999,
pages 1-4; http://stn2.net/pagesl1/newwave/moreinfo.html (accessed
5/22/2000).
Source: "Nukin' meals on the Net," USA Today--Tech Reviews; January 17,
2000, pages 1-3; http://www.usatoday.com/life/cyber/tech/review/crg815.htm
(accessed 5/11/2000).
Source: "Nukin' meals on the Net," USA Today--Tech Reviews; January 17,
2000, pages 1-3; http://www.usatoday.com/life/cyber/tech/review/crg815.htm
(accessed 5/11/2000).
Source: " 'Smart' devices could raise machines' IQ," The Daily Camera;
January 8, 2000, pages 1-2; http://www.bouldernews.com/business/08delec.html
(accessed 5/30/2000).
Source: "GE Unveils Concept 'Smart' Appliances at NAHB," Yahoo Finance--PR
Newswire; January 14, 2000, pp. 1-2;
http://biz.yahoo.com/prnews/000114/ky_ge_new__1.html (accessed January 19,
2000). Also, "GE, Microsoft in pact for talking friges, smart ovens," Yahoo
Finance; January 13, 2000, pages 1-2;
http://biz.yahoo.com/rf/000113/beg.html (accessed January 19, 2000).
Source: "GE Unveils Concept 'Smart' Appliances at NAHB," Yahoo Finance--PR
Newswire; January 14, 2000, pp. 1-2;
http://biz.yahoo.com/prnews/000114/ky_ge_new__1.html(accessed January 19,
2000). Also, "GE, Microsoft in pact for talking friges, smart ovens," Yahoo
Finance; January 13, 2000, pages 1-2;
http://biz.yahoo.com/rf/000113/beg.html (accessed January 19, 2000).
Source: "Appliances to Be Linked to Internet," Washington Post; January 18,
2000, pages 1-5;
http://www.washingtonpost.com/wp-dyn/business/A57379-2000Jan17.html
(accessed May 5, 2000).
Source: "Appliances to Be Linked to Internet," Washington Post; January 18,
2000, pages 1-5;
http://www.washingtonpost.com/wp-dyn/business/A57379-2000Jan17.html
(accessed May 5, 2000).
Source: "Can Appliances Get Smart?" Washington Post; May 26, 2000, pages
1-3; http://washingtonpost.com/wp-dyn/articles/A8164-2000May25.html
(accessed May 26, 2000).
Paraphrased from: "Can Appliances Get Smart?" Washington Post; May 26, 2000,
pages 1-3; http://washingtonpost.com/wp-dyn/articles/A8164-2000May25.html
(accessed May 26, 2000).
References

Consumer Digest's 1999 Annual Buying Guide (December 1998), pages 110-113.

Consumer Digest's 2000 Annual Buying Guide (December 1999), pages 106-108.

Consumer Reports December 1999 Issue, pages 28-31.

Fixler, Fortuna, Greenlees and Lane (1999), "The Use of Hedonic Regressions
to Handle Quality Change: The Experience in the U.S. CPI," Presented at the
Fifth Meeting of the International Working Group on Price Indices; August
1999; Pages 1-20. http://www.statice.is/ottawa/bls.rtf (accessed November
1999).

Silver, M.S. (1998), "An evaluation of the use of hedonic regressions for
basic components of consumer price indices," Third Meeting of the
International Working Group on Price Indices, Statistics Netherlands,
Voorburg: Netherlands (1998) 1-12.
http://www.statcan.ca/secure/english/ottawagroup/pdf/23SIL3.pdf (accessed
November 1999).

Lane, Walter (2000), "Addressing the New Goods Problem in the Consumer Price
Index," Presented at the Issues in Measuring Price Change and Consumption
Conference, Bureau of Labor Statistics, Washington, D.C., June 5-8, 2000,
pages 1-26.

Attachment 1







Attachment 2



Number and Distribution of CPI Price Changes for Major Appliances (HK01) and
Microwave Ovens (HK014 - 01A)



Major Appliances (HK01)
  Total Prices Collected Substitutions
# / (% of Total Prices
 Comparable
# / (% of Subs)
 Non-comparable
# / (% of Subs)

Month
9908 227 36 / (16) 19 / (53) 17 / (47)
9909 217 27 / (12) 22 / (81) 05 / (19)
9910 233 33 / (14) 30 / (91) 03 / (09)
9911 208 16 / (08) 11 / (69) 05 / (31)
9912 209 15 / (11) 09 / (60) 06 / (40)
0001 213 22 / (10) 17 / (77) 05 / (33)
0002 208 08 / (04) 07 / (88) 01 / (12)
0003 210 19 / (09) 14 / (74) 05 / (26)
0004 209 20 / (10) 19 / (95) 01 / (05)
Average 215 22 / (10) 16 / (73) 06 / (27)



Microwave Ovens
(HK014 - 01A
Month Total Prices Collected Substitutions # / (% of Total Prices)
Comparable # / (% of Subs) Non-comparable # / (% of Subs)
9908 45 06 / (13) 05 / ( 83)  01 / (17)
9909 40 06 / (15)  05 / ( 83) 01 / (17)
9910 52 10 / (19) 10 / (100)  0
9911 37 04 / (11) 03 / ( 75) 01 / (25)
9912 35 03 / (09) 03 / (100) 0
0001 36 01 / (03) 01 / (100) 0
0002 31 02 / (07) 02 / (100) 0
0003 37 04 / (11) 03 / ( 75) 01 / (25)
0004 36 03 / (08) 02 / ( 67) 01 / (33)
Average 39 4.3 / (11) 3.7 / (86) 0.6 / (14)



Attachment 3

Iterative Regression 1

Analysis of Variance

Source DF Sum of Squares Mean Square F Value Prob>F
Model 4 94.72223 23.68056 445.340 0.0001
Error 377 20.04664 0.05317
C Total 381 114.76887
Root MSE 0.23060 R-square 0.8253
Dep Mean 5.17114 Adj R-sq 0.8235
C.V. 4.45927

Parameter Estimates

Variable DF Parameter Estimate Standard -Error ^T for HO Parameter=0
Prob>|T| Tolerance
INTERCEP 1 4.276011 0.08258363 51.778 0.0001 .
Sale Price 1 -0.155174 0.02463827 -6.298 0.0001 0.98764281
Above Stove 1 1.106546 0.02811349 39.360 0.0001 0.95621038
Capacity 1 0.266982 0.04158320 6.420 0.0001 0.61155039
Max Watt 1 0.000344 0.00010306 3.334 0.0009 0.61034772

Iterative Regression 2

Analysis of Variance

Source DF Sum of Squares Mean Square F Value Prob>F
Model 19 100.86768 5.30883 138.247 0.0001
Error 362 13.90118 0.03840
C Total 381 114.76887
Root MSE 0.19596 R-square 0.8789
Dep Mean 5.17114 Adj R-sq 0.8725
C.V. 3.78953

Parameter Estimates

Variable DF Parameter estimate Standard Error T for HO:Parameter=0 Prob >|T|
Tolerance
INTERCEP 1 4.434162 0.09365782 47.344 0.0001 0.82343606
Sale Price 1 -0.107901 0.02293067 -4.706 0.0001 0.64537799
Above Stove 1 1.002691 0.02908077 34.480 0.0001 0.78608449
Capacity 1 0.337936 0.03116885 10.842 0.0001 0.28633282
Amana 1 0.470044 0.10334343 4.548 0.0001 0.46104201
Emerson 1 -0.218208 0.11875817 -1.837 0.0670 0.09690710
GE 1 0.254041 0.09317290 2.727 0.0067 0.32143698
Goldstar 1 -0.005343 0.10574798 -0.051 0.9597 0.06880676
Kenmore 1 0.056483 0.09268578 0.609 0.5426 0.19320499
Panasonic 1 0.071679 0.09791101 0.732 0.4646 0.25563210
Samsung 1 -0.146333 0.10209793 -1.433 0.1526 0.05643973
Sharp 1 0.081846 0.08994754 0.910 0.3635 0.21910637
Whirlpool 1 0.194855 0.10108550 1.928 0.0547 0.41832613
Admiral 1 -0.173484 0.11557959 -1.501 0.1342 0.43413066
Frigidare 1 0.020232 0.12238369 0.165 0.8688 0.69376954
Hotpoint 1 -0.087808 0.16679725 -0.526 0.5989 0.55326860
Kitchenaid 1 0.666140 0.13242177 5.030 0.0001 0.62584240
Magic Chef 1 -0.108736 0.14357889 -0.757 0.4493 0.43559856
Maytag 1 0.221528 0.12217731 1.813 0.0706 0.62782059
Sanyo 1 0.140041 0.14335251 -0.977 0.3293



Iterative Regression 3

Analysis of Variance



Source DF Sum of Squares Mean Square F Value Prob>F
Model 16 102.21430 6.38839 185.730 0.0001
Error 365 12.55457 0.03440
C Total 381 114.76887
Root MSE 0.18546 R-square 0.8906
Dep Mean 5.17114 Adj R-sq 0.8858
C.V. 3.58648

Parameter Estimates



Variable DF Parameter Estimate Standard Error T for HO:Parameter=0 Prob >
|T| Tolerance
INTERCEP 1 4.525727 0.04205034 107.626 0.0001 .
Sale Price 1 -0.100207 0.02051750 -4.884 0.0001 0.92125545
Above Stove 1 0.979198 0.02557297 38.290 0.0001 0.74753072
Capacity 1 0.316439 0.02881958 10.980 0.0001 0.82357154
Amana 1 0.406224 0.05346820 7.597 0.0001 0.95810121
Emerson 1 -0.277717 0.07782490 -3.568 0.0004 0.96160350
GE 1 0.202566 0.03050591 6.640 0.0001 0.80971564
Samsung 1 -0.183702 0.05186828 -3.542 0.0004 0.88717910
Whirlpool 1 0.151605 0.04836070 3.135 0.0019 0.85745856
Admiral 1 -0.229326 0.07260729 -3.158 0.0017 0.94947271
Kitchenaid 1 0.554401 0.09464594 5.858 0.0001 0.97009987
Maytag 1 0.193376 0.08074939 2.395 0.0171 0.89321220
Sanyo 1 -0.183975 0.10843536 -1.697 0.0906 0.98281091
Manual Ctrl 1 -0.196339 0.04476733 -4.386 0.0001 0.90554762
4 Stage 1 0.129928 0.02813420 4.618 0.0001 0.88334422
3 Stage 1 -0.037673 0.02421545 -1.556 0.1206 0.85263211
2 Stage 1 -0.030232 0.03383483 -0.894 0.3722 0.89913171

Iterative Regression 4

Analysis of Variance

Source DF Sum of Squares Mean Square F Value Prob>F
Model 18 103.29224 5.73846 181.504 0.0001
Error 363 11.47663 0.03162
C Total 381 114.76887
Root MSE 0.17781 R-square 0.9000
Dep Mean 5.17114 Adj R-sq 0.8950
C.V. 3.43849

Parameter Estimates

Variable DF Parameter Estimate Standard Error T for HO:Parameter=0 Prob >
|T| Tolerance
INTERCEP  1 4.593608 0.04792610 95.848 0.0001 .
Sale Price  1 -0.093331 0.01974323 -4.727 0.0001  0.91451638
Above Stove  1 0.878295 0.03425917 25.637 0.0001  0.38285716
Capacity  1 0.324539 0.02798272 11.598 0.0001  0.80296292
Amana  1 0.425151 0.05153959 8.249 0.0001  0.94780636
Emerson  1 -0.267639 0.07479585 -3.578 0.0004  0.95692316
GE  1 0.169177 0.03005411 5.629 0.0001  0.76681679
Samsung  1 -0.180404 0.04962886 -3.635 0.0003  0.89072827
Whirlpool  1 0.153733 0.04620027 3.328 0.0010  0.86359135
Admiral  1 -0.229515 0.06981933 -3.287 0.0011  0.94382304
Kitchenaid  1 0.524648 0.09140238 5.740 0.0001  0.95610239
Maytag  1 0.176421 0.07814033 2.258 0.0246  0.87676176
Sanyo  1 -0.196633 0.10410684 -1.889 0.0597  0.98005893
Manual Ctrl  1 -0.191767 0.04333815 -4.425 0.0001  0.88816149
4 Stage  1 0.123006 0.02609389 4.714 0.0001  0.94388785
BI Sensor  1 0.100476 0.02714295 3.702 0.0002  0.84849621
Recess Tray 1 -0.039121 0.02278787 -1.717 0.0869 0.85301826
Rotate Tray 1 -0.099492 0.03339411 -2.979 0.0031 0.86946641
Remove Rack 1 0.122349 0.03861730 3.168 0.0017 0.38830801

Iterative Regression 5

Analysis of Variance

Source DF Sum of Squares Mean Square F Value Prob>F
Model 23 104.74553 4.55415 162.659 0.0001
Error 358 10.02334 0.02800
C Total 381 114.76887
Root MSE 0.16733 R-square 0.9127
Dep Mean 5.17114 Adj R-sq 0.9071
C.V. 3.23578

Parameter Estimates

Variable DF Parameter estimate Standard Error T for HO:Parameter=o Prob >
|T| Tolerance
INTERCEP  1  4.509110  0.05139316  87.738  0.0001  .
Sale Price  1  -0.081705  0.01880387  -4.345  0.0001  0.89280155
Above Stove 1  0.911939  0.02580640  35.338  0.0001  0.59752630
Capacity  1  0.329449  0.02662205  12.375  0.0001  0.78562243
Amana  1  0.431729  0.04916347  8.782  0.0001  0.92243960
Emerson  1  -0.234625  0.07157220  -3.278  0.0011  0.92547530
GE  1  0.186048  0.02807473  6.627  0.0001  0.77819702
Samsung  1  -0.164814  0.04725484  -3.488  0.0005  0.87004705
Whirlpool  1  0.181595  0.04367254  4.158  0.0001  0.85585823
Admiral  1  -0.205690  0.06595919  -3.118  0.0020  0.93651069
Kitchenaid  1  0.490554  0.08649093  5.672  0.0001  0.94558316
Maytag  1  0.181547  0.07368047  2.464  0.0142  0.87327043
Sanyo  1  -0.190746  0.09819304  -1.943  0.0529  0.97559775
Manual Ctrl  1  -0.142937  0.04493488  -3.181  0.0016  0.73162229
4 Stage  1  0.091510  0.02516526  3.636  0.0003  0.89870451
BI Sensor  1  0.107924  0.02628174  4.106  0.0001  0.80145144
Recess Tray  1  -0.027766  0.02156569  -1.288  0.1987  0.84345235
Rotate Tray  1  -0.062352  0.03230478  -1.930  0.0544  0.82277369
Auto Roast  1  0.003277  0.02899576  0.113  0.9101  0.64966392
Auto Sensor  1  0.044087  0.01952391  2.258  0.0245  0.76945439
Convection  1  0.328550  0.04592900  7.153  0.0001  0.81710298
Auto Defrost 1  0.007119  0.02877048  0.247  0.8047  0.76542094
Dual Cook  1  0.013312  0.03037813  0.438  0.6615  0.69817190
Temp Cook  1  0.002361  0.02198576  0.107  0.9145  0.72061043

Iterative Regression 6

Analysis of Variance

Source DF Sum of Squares Mean Square F Value Prob>F
Model 24 104.68543 4.36189 154.431 0.0001
Error 357 10.08344 0.02824
C Total 381 114.76887
Root MSE 0.16806 R-square 0.9121
Dep Mean 5.17114 Adj R-sq 0.9062
C.V. 3.25001

Parameter Estimates

Variable DF Parameter Estimate Standard Error T for HO:Parameter=0 Prob >
|T| Tolerance
INTERCEP  1  4.537325  0.05009999  90.565  0.0001  .
Sale Price  1  -0.082518  0.01878190  -4.394  0.0001  0.90277927
Above Stove  1  0.926772  0.02428667  38.160  0.0001  0.68059229
Amana  1  0.445959  0.04994300  8.929  0.0001  0.90174753
Emerson  1  -0.220357  0.07185834  -3.067  0.0023  0.92621207
GE  1  0.185963  0.02871920  6.475  0.0001  0.75021779
Samsung  1  -0.157170  0.04787035  -3.283  0.0011  0.85529007
Whirlpool  1  0.173666  0.04424790  3.925  0.0001  0.84109417
Admiral  1  -0.190444  0.06667563  -2.856  0.0045  0.92457117
Kithchenaid  1  0.498982  0.08738574  5.710  0.0001  0.93448201
Maytag  1  0.166235  0.07419496  2.241  0.0257  0.86879226
Sanyo  1  -0.164616  0.09856197  -1.670  0.0958  0.97684289
Manual Ctrl  1  -0.170454  0.04373979  -3.897  0.0001  0.77895434
4 Stage  1  0.098934  0.02572974  3.845  0.0001  0.86728182
Sensor  1  0.067345  0.01983708  3.395  0.0008  0.75690296
Rotate Tray  1  -0.060431  0.03227088  -1.873  0.0619  0.83177077
Convection  1  0.329551  0.04585171  7.187  0.0001  0.82708655
Auto Start  1  -0.006278  0.01860806  -0.337  0.7360  0.85473709
Recipe List  1  0.021693  0.01891105  1.147  0.2521  0.88030517
Child Lock  1  -0.017376  0.01845193  -0.942  0.3470  0.88916519
Word Prompt  1  0.033961  0.01946659  1.745  0.0819  0.78066503
Multilingual 1  0.013801  0.02576376  0.536  0.5925  0.76128399
MFG Audio  1  0.061670  0.03905693  1.579  0.1152  0.82321522
Popcorn Key  1  -0.042231  0.02829633  -1.492  0.1365  0.81177457

Iterative Regression 7

Analysis of Variance

Source DF Sum of Squares Mean Square F Value Prob>F
Model 24 105.28649 5.01364 190.344 0.0001
Error 357 9.48238 0.02634
C Total 381 114.76887
Root MSE 0.16230 R-square 0.9174
Dep Mean 5.17114 Adj R-sq 0.9126
C.V. 3.13850

Parameter Estimates

Variable DF Parameter Estimate Standard Error T for HO:Parameter=0 Prob >
|T| Tolerance
INTERCEP  1  4.404413  0.04057410  108.552  0.0001  .
Sale Price  1  -0.076513  0.01865516  -4.101  0.0001  0.85336966
Above Stove  1  0.929792  0.02354914  39.483  0.0001  0.67506796
Capacity  1  0.341148  0.02642459  12.910  0.0001  0.75018137
Amana  1  0.463924  0.05090968  9.113  0.0001  0.80929688
Emerson  1  -0.195721  0.06946698  -2.817  0.0051  0.92423492
GE  1  0.194116  0.02851440  6.808  0.0001  0.70970563
Samsung  1  -0.120580  0.04662448  -2.586  0.0101  0.84080048
Whirlpool  1  0.141527  0.04311139  3.283  0.0011  0.82626704
Admiral  1  -0.172665  0.06451252  -2.676  0.0078  0.92100310
Kitchenaid  1  0.463217  0.08416469  5.504  0.0001  0.93943484
Maytag  1  0.118667  0.07206316  1.647  0.1005  0.85884072
Sanyo  1  -0.222003  0.09611049  -2.310  0.0215  0.95802381
Manual Ctrl  1  -0.189924  0.04043999  -4.696  0.0001  0.84980174
4 Stage  1  0.103933  0.02441391  4.257  0.0001  0.89831896
Sensor  1  0.056403  0.01833216  3.077  0.0023  0.82649944
Convection  1  0.327005  0.04301052  7.603  0.0001  0.87657131
Korea  1  -0.070262  0.02727961  -2.576  0.0104  0.69983390
Appliance  1  0.078701  0.02107512  3.734  0.0002  0.64384385
Warehouse  1  -0.223155  0.08506270  -2.623  0.0091  0.91970424
A-SIZE NE  1  0.067040  0.02771624  2.419  0.0161  0.84744738
A-SIZE West  1  0.069461  0.02521600  2.755  0.0062  0.85421573

Attachment 4



The graph above shows the percent of large and midsize countertop microwave
ovens bought new between 1995 and 1999 that were ever repaired or had a
serious problem that was not repaired. The data apply to all models within a
brand and do not account for manufacturing changes that could affect the
reliability of current models. Source: Consumer Reports, December 1999, page
31.



The graph above shows numeric values of the implicit prices, or parameter
estimates, estimated for microwave oven brands included in the hedonic model
for this product. Brands with negative parameter estimates represent, on
average, microwave ovens of inferior quality while brands with positive
parameter estimates represent, on average, microwave ovens of superior
quality.

Attachment 5

1999-2000 U.S. Level Price Relatives, Indexes and

Index Percent Changes for CPI Item SEHK01, Major Appliances



US level Item SEHK01, Major Appliances

Microwave Oven (HK014 - 01A) quality adjustments


  Without Quality Adjustments
   With Quality Adjustments


  Price relatives
 Indexes
 1 Mo % Chng
  Price relatives
 Indexes
 1 Mo % Chng

Month

Jul-99
   97.310
    97.310

Aug-99
  1.00047
 97.356
 0.05
  1.00136
 97.442
 0.14

Sep-99
  1.00784
 98.119
 0.78
  1.00773
 98.196
 0.77

Oct-99
  0.99630
 97.756
 -0.37
  0.99588
 97.791
 -0.41

Nov-99
  1.00807
 98.545
 0.81
  1.00765
 98.539
 0.76

Dec-99
  0.99816
 98.364
 -0.18
  0.99827
 98.369
 -0.17

Jan-00
  0.99239
 97.615
 -0.76
  0.99185
 97.567
 -0.81

Feb-00
  0.99923
 97.540
 -0.08
  0.99930
 97.499
 -0.07

Mar-00
  1.00324
 97.856
 0.32
  1.00237
 97.730
 0.24

Apr-00
  1.00319
 98.168
 0.32
  1.00319
 98.041
 0.32




July to Apr
    0.881
    0.751


Aug to Apr
    0.834
    0.614




Attachment 6





Attachment 7



 BUREAU OF LABOR STATISTICS             U.S. DEPARTMENT OF LABOR
   CONSUMER PRICE INDEX - ELI CHECKLIST
 collection             outlet                       quote
arranging
 period: __ __ __ __    number: __ __ __ __ __ __ __ code: __ __ __
code:  __ __ __ __

____________________________________________________________________________
_____________
 ELI No./
cluster
 title        HK014 MICROWAVE OVENS
code   01A
 item availability:    1-AVAILABLE    2-ELI NOT SOLD     3-INIT INCOMPLETE
 purpose of checklist: 1-INIT   2-INIT COMPL  3-SPEC CORR   4-SUB   5-REINIT
6-CHECK REV

____________________________________________________________________________
_____________
           CURRENT PERIOD                    |      SALES TAX
                                             |
           price _ _ _ _ _ _ . _ _ _         |      included:        YES
NO
                                             |
           type of price:  REG   SALE        |
                                             |
                                               |
             |
 YEAR-ROUND  |  in-season:  JAN  FEB  MAR  APR  MAY  JUN  JUL  AUG  SEP  OCT
NOV  DEC

____________|_______________________________________________________________
_____________
 respondent:                                   location:

____________________________________________________________________________
_____________
 field message:

____________________________________________________________________________
_____________
  TYPE                                        CAVITY CUBIC FEET
    A1  Table/countertop without             (Full-size models)
          optional mounting                     D1  1.8 cubic feet
    A2  Built-in above the stove                D2  1.7 cubic feet
          or over-the-range                     D3  1.6 cubic feet
    A3  Mounted under cabinet                   D4  1.5 cubic feet
    A4  Table/countertop with optional          D5  1.4 cubic feet
          mounting, mounting included           D6  1.3 cubic feet
          in base price                         D7  1.2 cubic feet
    A5  Table/countertop with optional          D8  1.1 cubic feet
          mounting, mounting has extra       (Midsize models)
          charge                                D9  1.0 cubic foot
                                               D10  0.9 cubic feet
 BRAND                                         D11  0.8 cubic feet
    B1  Amana                                (Compact models)
    B2  Emerson                                D12  0.7 cubic feet
    B3  General Electric (GE)                  D13  0.6 cubic feet
    B4  Goldstar                               D14  0.5 cubic feet
    B5  Kenmore                                D99  Other cubic feet,
    B6  Panasonic
    B7  Samsung
______________________________
    B8  Sharp/Sharp Carousel
    B9  Whirlpool                             MAXIMUM WATT COOKING POWER
   B99  Other brand,                            E1  1100 watts
                                                E2  1000 watts
        ______________________________          E3  950 watts
                                                E4  900 watts
 ** MANUFACTURER'S MODEL NUMBER                 E5  850 watts
                                                E6  800 watts
   C99  ______________________________          E7  750 watts
                                                E8  700 watts
                                                E9  650 watts
                                               E10  600 watts
                                               E99  Other wattage,


_____________________________





 ZZ99

____________________________________________________________________________
_____________
 BLS 3400B                                             HK014 page 1 of 2

Revised June 1999



----------------------------------------------------------------------------
----

HK014 - MICROWAVE OVENS - CONTINUED

  TYPE OF CONTROLS                              INSTALLATION KITS FOR
BUILT-INS OR
    F1  Touch sensitive/electronic              MOUNTABLE MICROWAVE OVENS
    F2  Push buttons                            (A2 and A3 only)
   F99  Other controls,                          AG1  Standard installation
kit for
                                                        built-ins or
mountables
        ______________________________                  (excludes exhaust
hood and fan)
                                                 AG2  Standard installation
kit for
 NUMBER OF POWER SETTINGS (LEVELS)                      built-ins or
mountables
    G1  10 power settings                               includes exhaust
hood only
   G99  Other number of power settings,          AG3  Standard installation
kit for
                                                        built-ins or
mountables
        _______________________________                 includes exhaust
hood and fan

  NUMBER OF PRE-SET MEMORY PROGRAMMING          OPTIONAL INSTALLATION KITS
   COOKING OPERATIONS/STAGES                    (A4 and A5 only)
    H1  4 stage programming                      AH1  Installation kit
incl., excludes
    H2  3 stage programming                             exhaust hood and fan
(Go to AI79)
    H3  2 stage programming                      AH2  Installation kit
included with
    H4  No stage programming available                  exhaust hood (Go to
AI79)
   H99  Other number of pre-set memory           AH3  Installation kit
included with
        programming cooking operations/stages,          exhaust hood and fan
(Go to AI79)
                                                 AH4  No installation kit
available
        _______________________________         AI79  Charge for optional
install. kit

 CAVITY FEATURES                                      ___________________//
$________
    I1  Insertable cooking probe or
          built-in sensor                       MANUFACTURER WARRANTY
    J1  Recessed tray                            AJ1  One year parts and
labor
    K1  Removable tray                          AJ99  Other warranty,
    L1  Rotating or carousel tray
    M1  Removable rack for 2 level cooking
_______________________________
   N99  Other cavity features,
                                               COUNTRY OF ORIGIN
        _______________________________          AK1  United States
                                                 AK2  Japan
 COOKING FEATURES                               AK99  Other country of
origin,
    P1  Auto Roast
    Q1  Auto sensor
_______________________________
    R1  Convection cook
    S1  Convection broil                        DELIVERY
    T1  Defrost cycle/auto defrost               AL1  Delivery available, no
extra charge
    U1  Dual cooking                             AL2  Delivery available,
extra charge
    V1  Temp cook/hold                           AL3  No delivery available
   W99  Other cooking features,                 AM79  Extra charge for
delivery,

        _______________________________               __________________//
$________

                                               OTHER PRICE FACTORS
  PROGRAMMING FEATURES
    X1  Auto start                              AN99
______________________________
    Y1  Built in recipe list for preparing
          different foods                       AP99
______________________________
   AA1  Child lockout
   AB1  Word prompting displays                 AQ99
______________________________
   AC1  Multi-lingual displays
   AD1  Manufacturer audio instructions/        ** OTHER CLARIFYING
INFORMATION
          audio message capability
   AE1  Popcorn key                             AR99
______________________________
  AF99  Other programming features,
                                                AS99
______________________________
        _____________________________
                                                AT99
______________________________

 PRICE CALCULATION BOX

  AU79  Microwave base price, __________________________________//
$__________

  AV89  TOTAL PRICE (AI79 + AM79 + AU79),
__________________________________// $__________


____________________________________________________________________________
___________



Robert N. Hall
Born Dec 25 1919

Asymmetrically Conductive Device and Method of Making the Same
Magnetron
Patent Number(s) 2,994,018

Inducted 1994


Robert Hall invented the version of the magnetron that operates most
microwave ovens, the semiconductor laser found in compact disk players, and
power rectifiers that greatly improved power transmission efficiency.

Invention Impact

His basic rectifier structure, with silicon replacing the germanium, is used
today for AC-to-DC power conversion in electric locomotives and high-voltage
DC electrical transmission. In 1962 Hall invented the semiconductor
injection laser, a device now used in all compact disk players and laser
printers, and most optical fiber communications systems.

Inventor Bio

Born in New Haven, Connecticut, Hall earned a B.S. in Physics at CalTech in
1942 and a Ph.D. in physics at CalTech in 1948. He then returned to the
General Electric Research and Development Center in Schenectady, New York,
where he had worked during WorldWar II on continuous wave magnetrons to jam
enemy radar. These were later incorporated into microwave ovens. After the
war Hall worked first on transistors, succeeding in making ingots of
never-before-available intrinsic germanium from which devices could be
fabricated. A 'chance observation' while measuring the electrical properties
of one of these ingots led him to his discovery of alloyed p-n junctions,
the fundamental elements of power rectifiers and some transistors. During
the 1970s energy crisis Hall worked on photovoltaics and solar cells.



 
 
 
 
 
 




 
 
 
 
 
 
 

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