Question 1

All of the following are limitations of direct consumer surveys except:

Accepted Answer

A)   the possibility that consumers' responses may not reflect their actual behavior in the market place.
B)   the possibility of response biases because survey respondents may not want to reveal their true preferences.
C)   the likelihood that respondents will deliberately and systematically mislead interviewers.
D)   the possibility that the type of questions asked may unintentionally bias the respondent's answers.

Question 2

Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:

Accepted Answer

A)   simple regression analysis.
B)   correlation analysis
C)   multiple regression analysis.
D)   cluster analysis.

Question 3

Scenario 1: The demand model relating the quantity of good XYZ sold QXYZ)  to the price of good PXYZ)  is reported below:
QXYZ = 4.46 + .304 PXYZ
Coefficient Standard Error 4.46 3.04
.304 .3243
Analysis of Variance:
 
-Refer to Scenario 1. What is the coefficient of determination?

Accepted Answer

A)   1.000
B)   0.000
C)   0.037
D)   0.324

Question 4

The intercept of the equation: Y = .09 + 1.5X is 1.5.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

Accepted Answer

A)   Test marketing.
B)   Conjoint analysis.
C)   Analysis of historical data.
D)   Expert opinion.

Question 6

Scenario 1: The demand model relating the quantity of good XYZ sold QXYZ)  to the price of good PXYZ)  is reported below:
QXYZ = 4.46 + .304 PXYZ
Coefficient Standard Error 4.46 3.04
.304 .3243
Analysis of Variance:
 
-Refer to Scenario 1. Is the slope coefficient statistically different from zero?

Accepted Answer

A)   No.
B)   Yes.
C)   Inconclusive.
D)   None of the above.

Question 7

The total sum of squares equals the sum of squares of the variation explained by the regression and the sum of squares of the errors.

Accepted Answer

A) True 
 B)False

Question 8

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

Accepted Answer

A)   a direct consumer survey.
B)   contingent valuation.
C)   the hedonic estimation technique.
D)   conjoint analysis.

Question 9

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

Accepted Answer

A)   prediction interval.
B)   confidence interval.
C)   logistic regression.
D)   none of the above.

Question 10

The coefficient of determination is defined as the

Accepted Answer

A)   ratio of the total sum of squared errors to the sum of squared errors.
B)   ratio of the regression sum of squares to the sum of the squared errors.
C)   ratio of the sum of squared errors to the total sum of squared errors.
D)   none of the above.

Question 11

The least squares regression is based on:

Accepted Answer

A)   maximizing the absolute sum of squares errors.
B)   minimizing the absolute sum of squares errors.
C)   maximizing the sum of squared errors.
D)   minimizing the sum of squared errors.

Question 12

Regression analysis is used for prediction, while correlation analysis is used to measure the strength of the association between two variables.

Accepted Answer

A) True 
 B)False

Question 13

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?

Accepted Answer

A)   1.5, inelastic
B)   -1.5, elastic
C)   120, elastic
D)   12, elastic

Question 14

Adjusted R2 gives the actual percentage of the variation in the dependent variable explained by the regression model.

Accepted Answer

A) True 
 B)False

Question 15

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider how to isolate the effect of different variables that influence demand.

Accepted Answer

A) True 
 B)False

Question 16

The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?

Accepted Answer

A)   25
B)   0.75
C)   1.00
D)   0

Question 17

In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that:

Accepted Answer

A)   the relationship between X1 and Y is significant.
B)   the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, holding X2 constant.
C)   the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, without regard to X2.
D)   the estimated average value of Y is 2 when X1 equals zero.

Question 18

Data collected on the same observation unit at a number of points in time are called:

Accepted Answer

A)   cross-section data.
B)   time series data.
C)   panel data.
D)   none of the above.

Question 19

Cross-sectional data observed at several points in time is known as:

Accepted Answer

A)   time series data.
B)   panel data.
C)   experimental data.
D)   none of the above.

Question 20

The number of observations minus the number of estimated coefficients in a regression equation is called:

Accepted Answer

A)   degrees of freedom.
B)   variance.
C)   standard error fo the regression.
D)   none of the above.

Exam 4: Techniques for Understanding Consumer Demand and Behavior

Scenario 1: The demand model relating the quantity of good XYZ sold QXYZ) to the price of good PXYZ) is reported below: QXYZ = 4.46 + .304 PXYZ Coefficient Standard Error 4.46 3.04 .304 .3243 Analysis of Variance: -Refer to Scenario 1. What is the coefficient of determination?

Correct AnswerverifiedShow Answer

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider how to isolate the effect of different variables that influence demand.

Correct AnswerverifiedShow Answer

The least squares regression is based on:

Correct AnswerverifiedShow Answer

In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that:

Correct AnswerverifiedShow Answer

The total sum of squares equals the sum of squares of the variation explained by the regression and the sum of squares of the errors.

Correct AnswerverifiedShow Answer

Scenario 1: The demand model relating the quantity of good XYZ sold QXYZ) to the price of good PXYZ) is reported below: QXYZ = 4.46 + .304 PXYZ Coefficient Standard Error 4.46 3.04 .304 .3243 Analysis of Variance: -Refer to Scenario 1. Is the slope coefficient statistically different from zero?

Correct AnswerverifiedShow Answer

Cross-sectional data observed at several points in time is known as:

Correct AnswerverifiedShow Answer

The intercept of the equation: Y = .09 + 1.5X is 1.5.

Correct AnswerverifiedShow Answer

The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?

Correct AnswerverifiedShow Answer

Data collected on the same observation unit at a number of points in time are called:

Correct AnswerverifiedShow Answer

Adjusted R2 gives the actual percentage of the variation in the dependent variable explained by the regression model.

Correct AnswerverifiedShow Answer

The number of observations minus the number of estimated coefficients in a regression equation is called:

Correct AnswerverifiedShow Answer

The coefficient of determination is defined as the

Correct AnswerverifiedShow Answer

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

Correct AnswerverifiedShow Answer

Regression analysis is used for prediction, while correlation analysis is used to measure the strength of the association between two variables.

Correct AnswerverifiedShow Answer

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

Correct AnswerverifiedShow Answer

All of the following are limitations of direct consumer surveys except:

Correct AnswerverifiedShow Answer

Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:

Correct AnswerverifiedShow Answer

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

Correct AnswerverifiedShow Answer

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?

Correct AnswerverifiedShow Answer

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In a multiple regression problem involving two independent variables, if b₁is computed to be +2.0, it means that:

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Adjusted R²gives the actual percentage of the variation in the dependent variable explained by the regression model.

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