# Marketing Chapter 18 The Average Contribution Sales One Additional Salesperson Would See Regression

Document Type
Test Prep
Book Title
Basic Marketing Research 9th Edition
Authors
Gilbert A. Churchill, Tom J. Brown, Tracy A. Suter
Page 1
1. The most used multivariate data analysis technique in applied marketing research is
a.
regression analysis.
b.
frequency analysis.
c.
paired sample t-test.
d.
cross tabulation.
e.
Cramer's V.
d
RATIONALE:
The most used multivariate data analysis technique is cross tabulation. See 18-1:
Cross Tabulation.
POINTS:
1
DIFFICULTY:
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REFERENCES:
Remember
QUESTION TYPE:
Multiple Choice
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LEARNING OBJECTIVES:
18.01 - Discuss why a researcher might conduct a multivariate analysis.
DATE CREATED:
7/31/2017 4:48 AM
DATE MODIFIED:
7/31/2017 4:49 AM
2. Which of the following is a technique that measures the closeness of the relationship between two or more variables
by considering their joint variation?
a.
Correlation analysis
b.
Analysis of variance (ANOVA)
c.
Multiple regression analysis
d.
z-test
e.
F-test
a
RATIONALE:
This describes correlation analysis. See 18-4: Pearson Product-Moment
Correlation Coefficient.
POINTS:
1
DIFFICULTY:
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Remember
QUESTION TYPE:
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18.05 - Discuss the Pearson product-moment correlation coefficient.
DATE CREATED:
7/31/2017 4:56 AM
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7/31/2017 4:58 AM
3. Which of the following is a technique that measures the association between a criterion variable and one or more
independent variables?
a.
b.
c.
d.
e.
c
Page 2
RATIONALE:
This describes regression analysis. See 18-5: Regression Analysis.
POINTS:
1
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REFERENCES:
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LEARNING OBJECTIVES:
18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 4:59 AM
DATE MODIFIED:
7/31/2017 5:02 AM
4. To determine the degree to which the variables in a cross-tabulation analysis are independent of one another, a
researcher should use
a.
a cross tabulation variable independence test.
b.
the Pearson chi-square test of independence.
c.
regression analysis.
d.
Cramer's V.
e.
Kendall's coefficient of concordance.
b
RATIONALE:
The Pearson chi-square test of independence is used to determine the degree to
which the variables in a cross-tabulation analysis are independent of one another.
See 18-1: Cross Tabulation.
POINTS:
1
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REFERENCES:
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LEARNING OBJECTIVES:
18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 5:03 AM
DATE MODIFIED:
7/31/2017 5:05 AM
5. Which of the following statements about regression/correlation analysis is FALSE?
a.
Correlation analysis involves the measurement of the closeness of the relationship between two or more
variables.
b.
Regression analysis involves the derivation of an equation that relates the criterion variable to one or more
predictor variables.
c.
Regression analysis can establish the causal relationship between two or more variables.
d.
The regression line minimizes the sum of the squared deviations about the line.
e.
It is much more common to conduct regression analyses using a computer.
c
RATIONALE:
All of these statements are true except that regression analysis can establish the
causal relationship between two or more variables. See 18-5: Regression
Analysis.
POINTS:
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REFERENCES:
Understand
Page 3
QUESTION TYPE:
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18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 5:06 AM
DATE MODIFIED:
7/31/2017 5:08 AM
6. Which of the following emphasizes the division of the sample into subgroups so as to learn how the dependent
variable varies from subgroup to subgroup?
a.
Longitudinal analysis
b.
Coding
c.
Cross-sectional analysis
d.
Cross tabulation
e.
One-way tabulation
d
RATIONALE:
This describes cross tabulation. See 18-1: Cross Tabulation.
POINTS:
1
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 5:09 AM
DATE MODIFIED:
7/31/2017 5:11 AM
7. Which of the following statements about the Pearson chi-square test of independence is NOT true?
a.
It assesses the degree to which variables in a cross-tabulation are independent of one another.
b.
The value can range from zero to some upper value limited by sample size and distribution of cases across
the cells.
c.
It doesn't measure the strength of association when variables are dependent.
d.
It is only useful for univariate analysis.
e.
All of these statements are true.
d
RATIONALE:
All of these statements are true except that it is only useful for univariate analysis.
See 18-1: Cross Tabulation.
POINTS:
1
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Understand
QUESTION TYPE:
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 5:12 AM
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7/31/2017 5:15 AM
8. A series of cross-tabulations between an outcome variable and several possible causal variables presented in a single
table on a single page is known as a(n)
Page 4
a.
tabulation template.
b.
tabulation matrix.
c.
banner table.
d.
causal digest.
e.
analysis legend.
c
RATIONALE:
A banner table is a series of cross-tabulations between an outcome variable and
several possible causal variables presented in a single table on a single page. See
18-1: Cross Tabulation.
POINTS:
1
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LEARNING OBJECTIVES:
18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 5:16 AM
DATE MODIFIED:
7/31/2017 5:18 AM
9. Given a cross tabulation between years of education and income, we would compute percentages in the direction of
years of education because
a.
the probability that given X income you will have Y years of education makes sense.
b.
the probability that given X years of education you will have Y income makes sense.
c.
It doesn't matter which way you do it.
d.
All of these are correct.
e.
None of these are correct.
b
RATIONALE:
Percentages would be calculated in the direction of years of education because
the probability that given X years of education you will have Y income makes
sense. See 18-1: Cross Tabulation.
POINTS:
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DATE CREATED:
7/31/2017 5:18 AM
DATE MODIFIED:
9/21/2017 11:21 AM
10. A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas.
Each year for the past five years, she has surveyed 500 individuals (one-half urban, one-half rural) randomly selected
from across the United States. She is specifically interested in any differences that may exist between the two groups
with regard to usage. The results of the current study indicate that people in urban areas use bank debit cards 12 times
per month on average, while those in rural areas use bank cards 10 times per month on average. Assuming that the
standard error of estimate for the difference in means is 1.5, calculate the value of the test statistic that would be used
in the comparison of the two means.
a.
0.75
Page 5
b.
1.33
c.
1.88
d.
1.96
e.
None of these are correct.
b
RATIONALE:
The value of the test statistic would be 1.33. See 18-2: Independent Samples T-
Test for Means.
POINTS:
1
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QUESTION TYPE:
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LEARNING OBJECTIVES:
18.04 - Explain the difference between an independent sample t-test for means
and a paired sample t-test for means.
DATE CREATED:
7/31/2017 5:25 AM
DATE MODIFIED:
7/31/2017 5:28 AM
11. A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas.
Each year for the past five years, she has surveyed 500 individuals (one-half urban, one-half rural) randomly selected
from across the United States. She is specifically interested in any differences that may exist between the two groups
with regard to usage. The results of the current study indicate that people in urban areas use bank debit cards 12 times
per month on average, while those in rural areas use bank cards 10 times per month on average. Given that the critical
value that the test statistic is to be compared with is equal to 1.645 at a 90% significance level, which of the following
statements are true?
a.
The researcher should reject the null hypothesis at the 90% significance level.
b.
The researcher might be able to reject the null hypothesis at the 95% level of significance.
c.
The researcher cannot reject the null hypothesis at this significance level.
d.
The researcher has provided evidence that people in urban areas use bank debit cards more than people in
rural areas.
e.
c
RATIONALE:
The researcher cannot reject the null hypothesis at this significance level. See 18-
2: Independent Samples T-Test for Means.
POINTS:
1
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18.04 - Explain the difference between an independent sample t-test for means
and a paired sample t-test for means.
DATE CREATED:
7/31/2017 5:29 AM
DATE MODIFIED:
7/31/2017 5:36 AM
12. Suppose that the relationship between sales (Y, in \$000) and number of salespeople (X) is represented by the
following regression equation: Y = 105.2 + 35.8X. What will be the average contribution to sales of one additional
salesperson?
a.
\$35.80
Page 6
b.
\$141,000
c.
\$35,800
d.
\$141.00
e.
c
RATIONALE:
The average contribution to sales of one additional salesperson would be \$35,800.
See 18-5: Regression Analysis.
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1
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DATE CREATED:
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DATE MODIFIED:
7/31/2017 5:39 AM
13. Suppose that the relationship between sales (Y, in \$000) and number of salespeople (X) is represented by the
following regression equation: Y = 105.2 + 35.8X. What will average sales be equal to when 10 salespeople are used?
a.
\$358,000
b.
\$463.20
c.
\$358.00
d.
\$463,200
e.
d
RATIONALE:
The average sales will be equal to \$463,200 when 10 sales people are used. See
18-5: Regression Analysis.
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DATE CREATED:
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DATE MODIFIED:
7/31/2017 5:42 AM
14. Suppose the ordinary least-squares approach to a regression analysis produced the following: Y = 20 - 39X and R2 =
.90. Which of the following statements is FALSE?
a.
For every unit change in X there is a corresponding negative change in the average value of Y of 39 units.
b.
90% of the variation in Y is associated with variation in X.
c.
The slope of the line is 20.
d.
The average value of Y given x = 10 is −370.
e.
If X = 0, then Y = 20.
c
Page 7
RATIONALE:
All of the statements are true except that the slope of the line is 20. See 18-5:
Regression Analysis.
POINTS:
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DATE CREATED:
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DATE MODIFIED:
7/31/2017 5:45 AM
15. An analyst has a set of normally distributed internally scaled data resulting from two observations on the same
sample of subjects, and he wishes to investigate if there is any difference in these two means. The appropriate statistical
procedure is
a.
a z-test for difference in two means.
b.
analysis of variance (ANOVA).
c.
a paired samples t-test.
d.
a chi-square goodness-of-fit test.
e.
regression analysis.
c
RATIONALE:
The appropriate procedure is a paired samples t-test. See 18-3: Paired Sample T-
Test for Means.
POINTS:
1
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18.04 - Explain the difference between an independent sample t-test for means
and a paired sample t-test for means.
DATE CREATED:
7/31/2017 6:10 AM
DATE MODIFIED:
7/31/2017 6:12 AM
16. If the correlation between two variables x and y is equal to −0.90, which of the following is TRUE?
a.
x and y are highly related, whereby a positive change in x is accompanied by a positive change in y.
b.
The two variables x and y are not related to one another.
c.
x and y are highly related, whereby a negative change in x is accompanied by a positive change in y.
d.
The coefficient of determination is equal to −0.81.
e.
An increase in x is accompanied by a decrease in y.
c
RATIONALE:
x and y are highly related, whereby a negative change in x is accompanied by a
positive change in y. See 18-4: Pearson Product-Moment Correlation Coefficient.
POINTS:
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18.05 - Discuss the Pearson product-moment correlation coefficient.
DATE CREATED:
7/31/2017 6:13 AM
DATE MODIFIED:
7/31/2017 6:16 AM
17. The value of the product-moment coefficient of correlation ranges from
a.
1.0 to 0.0.
b.
1.0 to 1.0.
c.
0.5 to 0.5.
d.
0.0 to 1.0.
e.
−∞ to ∞.
b
RATIONALE:
The value of the product-moment coefficient of correlation ranges from −1.0 to 1.0.
See 18-4: Pearson Product-Moment Correlation Coefficient.
POINTS:
1
DIFFICULTY:
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REFERENCES:
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18.05 - Discuss the Pearson product-moment correlation coefficient.
DATE CREATED:
7/31/2017 6:18 AM
DATE MODIFIED:
7/31/2017 6:25 AM
18. A brand product manager needs to know if men and women hold different attitudes about her product. What test
should the brand product manager use?
a.
Cross-tabulation
b.
Independent samples t-test for means
c.
Pearson chi-square test of independence
d.
Paired sample t-test for means
e.
Regression analysis
b
RATIONALE:
The appropriate test would be an independent samples t-test for means. See 18-2:
Independent Samples T-Test for Means.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Apply
QUESTION TYPE:
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False
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18.03 - Describe a technique for comparing groups on a continuous dependent
variable.
DATE CREATED:
7/31/2017 6:26 AM
DATE MODIFIED:
7/31/2017 6:29 AM
19. When performing cross tabulations, percentages are always calculated in the direction of the
a.
dependent variable.
Page 9
b.
independent variable.
c.
causal variable.
d.
dependent and causal variables.
e.
independent and causal variables.
e
RATIONALE:
When performing cross tabulations, percentages are always calculated in the
direction of the independent and causal variable. See 18-1: Cross Tabulation.
POINTS:
1
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REFERENCES:
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 6:30 AM
DATE MODIFIED:
9/21/2017 11:22 AM
20. In testing a multiple regression equation for statistical significance, the first step involves
a.
testing the intercept term using a t-test.
b.
using a t-test to examine the significance of the overall equation.
c.
using an F-test to examine the significance of the overall equation.
d.
testing each of the slope coefficients using a t-test.
e.
testing each of the slope coefficients using an F-test.
c
RATIONALE:
The first step is using an F-test to examine the significance of the overall equation.
See 18-5: Regression Analysis.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Remember
QUESTION TYPE:
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False
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18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 6:35 AM
DATE MODIFIED:
7/31/2017 6:39 AM
21. Which of the assumptions listed below are necessary in order for the coefficients in a partial regression equation to
be interpreted as the average change in the criterion variable associated with a unit change in the appropriate predictor
variable holding other predictor variables constant?
a.
The predictor variables must be correlated.
b.
The variance among predictor variables must be equal.
c.
The criterion variable must be normally distributed.
d.
The predictor variables must be uncorrelated.
e.
None of these are necessary assumptions.
d
RATIONALE:
The predictor variables must be uncorrelated. See 18-5: Regression Analysis.
Page 10
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18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 6:41 AM
DATE MODIFIED:
7/31/2017 6:45 AM
22. Assuming the two predictors X1 and X2 are not correlated, the coefficients of partial regression can be interpreted as
the
a.
unit change in the criterion variable associated with an average change in the appropriate predictor variable
while holding the other predictor variable constant.
b.
change in the criterion variable associated with an average change in the predictor variables.
c.
average change in the criterion variable associated with an average change in the appropriate predictor
variable while holding the other predictor variable constant.
d.
average change in the criterion variable associated with a unit change in the appropriate predictor variable
while holding the other predictor variable constant.
e.
average change in the criterion variable associated with a unit change in the appropriate predictor variable.
d
RATIONALE:
The coefficients of partial regression can be interpreted as the average change in
the criterion variable associated with a unit change in the appropriate predictor
variable while holding the other predictor variable constant. See 18-5: Regression
Analysis.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Understand
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18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 6:46 AM
DATE MODIFIED:
7/31/2017 6:49 AM
23. When comparing the independent samples t-test for means and the paired sample t-test for means, one is for
a.
univariate analysis while the other is for multivariate analysis.
b.
small sample sizes while the other is for large sample sizes.
c.
continuous variables while the other is for categorical variables.
d.
measures from separate groups while the other is for measures from the same group.
e.
All of these are correct.
d
RATIONALE:
One is for measures from separate groups while the other is for measures from the
same group. See 18-2: Independent Samples T-Test for Means.
POINTS:
1
DIFFICULTY:
Easy
Page 11
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Understand
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18.03 - Describe a technique for comparing groups on a continuous dependent
variable.
DATE CREATED:
7/31/2017 6:50 AM
DATE MODIFIED:
7/31/2017 6:53 AM
24. Which of the following is FALSE about cross tabulations?
a.
Cross tabulations work equally well with continuous measures that have been recast as categorical
measures.
b.
Cross tabulations are used for studying the relationships between two (or more) categorical variables.
c.
Recasting continuous measures into categories may result in lowered statistical power.
d.
Cross tabulation seeks to investigate the influence of the independent variable on the dependent variable.
e.
Recasting continuous measures into categories almost never results in the loss of information.
e
RATIONALE:
All of these are true except that recasting continuous measures into categories
almost never results in the loss of information. See 18-1: Cross Tabulation.
POINTS:
1
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Easy
REFERENCES:
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 6:53 AM
DATE MODIFIED:
7/31/2017 6:55 AM
25. The upper limit of the Pearson chi-square test of independence is limited by
a.
sample size.
b.
the distribution of cases across the cells.
c.
degrees of freedom.
d.
sample size and distribution of cases across the cells.
e.
sample size and degrees of freedom.
d
RATIONALE:
The upper limit of the Pearson chi-square test of independence is limited by
sample size and the distribution of cases across the cells. See 18-1: Cross
Tabulation.
POINTS:
1
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Easy
REFERENCES:
Remember
QUESTION TYPE:
Multiple Choice
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False
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 6:57 AM
DATE MODIFIED:
9/21/2017 11:23 AM
Page 12
26. Which of the following concerning the Pearson chi-square test is FALSE?
a.
The Pearson chi-square test is conceptually similar to the chi-square goodness-of-fit test.
b.
The Pearson chi-square test tests the null hypothesis that the variables are independent.
c.
The Pearson chi-square test measures the degree of association between variables.
d.
The Pearson chi-square test assesses the degree to which the two variables in a cross tabulation analysis are
independent of one another.
e.
All of the these statements concerning the Pearson chi-square test are true.
c
RATIONALE:
All of these are true except that the Pearson chi-square test measures the degree
of association between variables. See 18-1: Cross Tabulation.
POINTS:
1
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Understand
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 7:03 AM
DATE MODIFIED:
7/31/2017 7:06 AM
27. A popular approach to measuring the strength of the relationship between two categorical variables is
a.
cross tabulation.
b.
Pearson chi-square test of independence.
c.
Cramer's V.
d.
regression analysis.
e.
Kendall's coefficient of concordance.
c
RATIONALE:
Cramer’s V is a popular approach to measuring the strength of the relationship
between two categorical variables. See 18-1: Cross Tabulation.
POINTS:
1
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Easy
REFERENCES:
Remember
QUESTION TYPE:
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False
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 7:09 AM
DATE MODIFIED:
7/31/2017 7:12 AM
28. Cramer's V is scaled to range between
a.
0.0 and 1.0.
b.
1.0 and 0.0.
c.
1.0 and 1.0.
d.
0.0 to ∞.
e.
−∞ to ∞.
a
RATIONALE:
Cramer's V is scaled to range between 0.0 and 1.0. See 18-1: Cross Tabulation.
Page 13
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1
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Remember
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18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 7:13 AM
DATE MODIFIED:
7/31/2017 7:18 AM
29. A gum manufacturer wants to determine whether blue packaging or red packaging is preferred. The company
performs a sales test by introducing red packages into a random sample of ten stores, and blue packages are introduced
in an independent, random sample of ten stores. The technique most appropriate for analyzing the data is
a.
a paired sample t-test for means.
b.
the Spearman rank-order correlation analysis.
c.
regression analysis.
d.
an independent samples t-test for means.
e.
correlation analysis.
d
RATIONALE:
The most appropriate technique is the independent samples t-test for means. See
18-2: Independent Samples T-Test for Means.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Apply
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.03 - Describe a technique for comparing groups on a continuous dependent
variable.
DATE CREATED:
7/31/2017 7:18 AM
DATE MODIFIED:
7/31/2017 7:23 AM
30. A gas station wants to compare a group of consumers' overall perceptions of service with overall perceptions of
service for a nearby competitor. This situation calls for the use of
a.
a paired sample t-test for means.
b.
analysis of variance (ANOVA).
c.
regression analysis.
d.
an independent samples t-test for means.
e.
correlation analysis.
b
RATIONALE:
This situation calls for the use of ANOVA. See 18-5: Regression Analysis.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Apply
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.06 - Discuss a technique for examining the influence of one or more predictor
Page 14
variables on an outcome variable.
DATE CREATED:
7/31/2017 7:33 AM
DATE MODIFIED:
7/31/2017 7:37 AM
31. In ANOVA, the independent variables are typically called
a.
treatments.
b.
factors.
c.
F-statistics.
d.
causal variables.
e.
tabulations.
b
RATIONALE:
The independent variables are typically called factors. See 18-5: Regression
Analysis.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Remember
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 7:37 AM
DATE MODIFIED:
7/31/2017 7:41 AM
32. In ANOVA, a ____ allows a researcher to examine simultaneously the effects of two or more independent variables.
a.
cross tabulation
b.
scatter diagram
c.
correlation coefficient
d.
factorial design
e.
coefficient of determination
d
RATIONALE:
In ANOVA, a factorial design allows a researcher to examine simultaneously the
effects of two or more independent variables. See 18-5: Regression Analysis.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Remember
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 7:42 AM
DATE MODIFIED:
7/31/2017 7:57 AM
33. If the null hypothesis of no differences across groups is true,
a.
total variation should be equal to between-group variation.
b.
between-group variation should be equal to within-group variation.
Page 15
c.
within-group variation should be equal to total variation.
d.
None of these are correct.
e.
All of these are correct.
e
RATIONALE:
All of these are true if the null hypothesis of no differences across groups is true.
See 18-1: Cross Tabulation.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Understand
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 7:59 AM
DATE MODIFIED:
9/21/2017 11:24 AM
34. The numerator in the Pearson product-moment correlation coefficient formula
a.
is called the cross-products sum.
b.
establishes the degree of covariation between two variables.
c.
can range from 1.0 to +1.0.
d.
is called the cross-products sum and establishes the degree of covariation between two variables.
e.
is called the cross-product sum and can range from −1.0 to +1.0.
d
RATIONALE:
The numerator in the Pearson product-moment correlation coefficient formula is
called the cross-products sum and establishes the degree of covariation between
two variables. See 18-4: Pearson Product-Moment Correlation Coefficient.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Understand
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.05 - Discuss the Pearson product-moment correlation coefficient.
DATE CREATED:
7/31/2017 8:05 AM
DATE MODIFIED:
9/21/2017 11:24 AM
35. If a researcher were to take ten Asian countries where per capita income and automobile ownership by per capita
were known, trying to find the overall picture of market size for the market could probably be done by using which of
the following methods?
a.
Analogy method
b.
Latin square
c.
d.
Chain ratio method
e.
Regression analysis
e
RATIONALE:
Regression analysis is the most appropriate method. See 18-5: Regression
Analysis.
Page 16
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Apply
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.06 - Discuss a technique for examining the influence of one or more predictor
variables on an outcome variable.
DATE CREATED:
7/31/2017 8:09 AM
DATE MODIFIED:
7/31/2017 8:11 AM
36. Which statistical technique should you use to answer the question: "Is there a significant relation-ship between
education level (a four-category ordinal variable) and whether or not consumers are aware that Firestone is a brand of
tires?"
a.
Multiple regression analysis
b.
Pearson correlation coefficient
c.
Chi-square test
d.
Simple regression analysis
e.
None of these are correct.
c
RATIONALE:
The Chi-square test is appropriate. See 18-1: Cross Tabulation.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Apply
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.02 - Explain the purpose and importance of cross tabulation.
DATE CREATED:
7/31/2017 8:19 AM
DATE MODIFIED:
7/31/2017 8:21 AM
37. If an organization selects two towns for a market study (one for the test and the other as a control) and measures
the amount of trash in pounds per household, it must first determine the equality of the two towns using a test of
a.
a single proportion.
b.
a single mean.
c.
two means.
d.
two proportions.
e.
None of these are correct.
c
RATIONALE:
A test of two means would be appropriate. See 18-3: Paired Sample T-Test for
Means.
POINTS:
1
DIFFICULTY:
Easy
REFERENCES:
Apply
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
18.04 - Explain the difference between an independent sample t-test for means

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