MKTG 482 Chapter 10

National opinion polls tend to use sample sizes ranging from: A) 10 to 100 B) 1,000 to 1,200 C) 50,000 to 100,000 D) 1 million to 5 million E) 10 million to 15 million

1,000 to 1,200

Zoom-IT is a high-technology firm specializing in electronic consumer products. In particular, the company has worked on expansion systems for LCD and plasma screens. The company has developed a method for expanding the 2-inch screen on Apple iPod video display units to 8 inches by increasing the weight of the iPod by only 3 ounces. The "pop out" screen relies on Space Age plastics and an electronic expansion system that works similar to camera shutters. The only drawback is that the add-on device costs an additional $350, more than the cost of the iPod. Before going into production and marketing, Zoom-IT CEO Jane Ellen Roberts, decides she wants some evidence that the device will sell. She commissions the marketing research department to conduct a survey and the critical question asks for likelihood to purchase the product on a 10-point scale. The researchers, attempting to determine the ideal sample size, realize there is no former study on this issue on which they could estimate the standard deviation in the population. They are considering the expense of a small pilot test, but researchers James Hughes and Bennet Alford make a reasonable recommendation to: A) use 50/50. B) use the standard deviation from a study they conducted on expanding plasma screens from 40 inches to 90 inches. C) use a table of random numbers to generate a random standard deviation. D) divide the 10 scale points by 6 because ±3 (or 6) standard deviations covers the range of observations (10) and by dividing by 6 will yield a reasonable estimate of 1 standard deviation which they may use for s. E) None of the above; you do not need to estimate standard deviation in the sample size formula for the mean.

divide the 10 scale points by 6 because ±3 (or 6) standard deviations covers the range of observations (10) and by dividing by 6 will yield a reasonable estimate of 1 standard deviation which they may use for s.

Which of the following is NOT one of the axioms of sample size and accuracy? A) The only perfectly accurate sample is a census. B) A probability sample will always have some inaccuracy (sample error). C) Increasing sample size increases the sample's representativeness. D) A probability sample size can be a very tiny percentage of the population size and still be very accurate. E) The size of a probability sample depends on the client's desired accuracy balanced against the cost of data collection.

Increasing sample size increases the sample's representativeness.

Which of the following is the best definition of variability? A) It is the amount of dispersion in a data set containing interval or nominal data. B) It is the difference between scores in the present sample and scores in a previous sample. C) It is the amount of dissimilarity in ordinal data. D) It is the amount of dissimilarity (or similarity) in respondents' answers to a particular question. E) It is the amount of responses in one respondent's answers to a particular survey question.

It is the amount of dissimilarity (or similarity) in respondents' answers to a particular question.

Which of the following is true regarding a probability sample? A) The larger the sample size, the more likely the sample is representative. B) The larger the sample size, the more accurate it is (less sample error). C) The more representative the sample, the larger the sample size. D) They only become accurate when they are larger than 1,000. E) The larger the sample size, the more room there is for inaccuracy.

The larger the sample size, the more accurate it is (less sample error).

When all other factors are held constant, as we increase the level of accuracy, the sample size and the cost of a marketing research survey are best characterized by which of the following? A) The sample size will increase but the cost will decrease. B) The sample size will decrease but the cost will increase. C) The sample size and the cost of the survey will increase. D) The sample size will remain the same but the cost will increase. E) The sample size will decrease but the cost will remain the same.

The sample size and the cost of the survey will increase.

When determining sample size, the conventional approach would NOT be: A) an average of the sample sizes of similar studies. B) the modal sample size of previous surveys. C) 5 percent of the entire population. D) the sample size of a competitor's survey that the company somehow discovered. E) the sample sizes normally reported in published reports.

5 percent of the entire population.

If we assume the "highest" amount of variability when estimating pq, then pq are: A) 50, 50. B) 1, 99. C) 0, 10. D) 1, 5. E) 0, 5.

50, 50.

Consider that we have nominal data (responses are categorical) and the responses are "Yes" or "No" to the question: "The next time you order pizza, will you use Domino's?" Which of the following sets of responses shows the MOST variability? A) 90 percent say "Yes" and 10 percent say "No" B) 80 percent say "Yes" and 20 percent say "No" C) 70 percent say "Yes" and 30 percent say "No" D) 60 percent say "Yes" and 40 percent say "No" E) 55 percent say "Yes" and 45 percent say "No"

55 percent say "Yes" and 45 percent say "No"

Level of confidence in sample size formulae is normally set at: A) 95 percent or 96 percent. B) 5 percent or 10 percent. C) 95 percent or 99 percent. D) 1 percent or 5 percent. E) None of the above; level of confidence is determined by the formula.

95 percent or 99 percent.

If you were to graph sample accuracy and sample size, which of the following generalizations would be most accurate? A) Accuracy is very low, even with small sample sizes of 50 or below. B) Accuracy constantly increases as sample size increases; a sample of 2,000 is four times more accurate than a sample of 500. C) With increases in sample size, sample accuracy decreases. D) We cannot graph sample size and accuracy because we must also include the level of confidence and the variability within the sample data. E) Accuracy increases rapidly when sample size increases up to about 500 and then levels off.

Accuracy increases rapidly when sample size increases up to about 500 and then levels off.

Which of the following statements best illustrates the concept of the "level of confidence" or z value chosen in sample size formulae? A) By setting z at 1.96 it means that the manager could expect, if she conducted the survey many, many times, the value of p would fall within the sample error range 95 percent of the time. B) By setting z at 1.96 it means that the manager could expect, if she conducted the survey many, many times, the value of p would fall within the sample error range 5 percent of the time. C) By setting z at 2.58 it means that the manager could expect, if she conducted the survey many, many times, the value of p would fall within the sample error range 95 percent of the time. D) By setting z at 1.96 it means that the manager could expect, if she conducted the survey many, many times, the value of p would fall within the sample error range 99 percent of the time. E) By setting z at 2.58 it means that the manager could expect, if she conducted the survey many, many times, the value of p would fall within the sample error range 1 percent of the time.

By setting z at 1.96 it means that the manager could expect, if she conducted the survey many, many times, the value of p would fall within the sample error range 95 percent of the time.

Which of the following statements is most accurate regarding the relationship between sample size and the sample representativeness? A) There is a high relationship between the size of a sample and the representativeness of the population from which it is drawn. B) There is no relation between the size of a sample and the representativeness of the population from which it is drawn. C) You cannot have a representative sample unless the sample size is equal to or exceeds 10 percent of the population. D) Sample size determines representativeness but only if the sample plan is a probability sampling plan. E) Sample size determines representativeness but only if the sample plan is a nonprobability sampling plan.

There is no relation between the size of a sample and the representativeness of the population from which it is drawn.

Which of the following is true regarding probability samples? A) They are as perfect as a census and contain no errors caused by competitors. B) They will always contain some inaccuracy (sample error). C) They contain serious mistakes, but can be adjusted by statistical weighting procedures. D) They are particularly susceptible to nonsampling errors. E) When they approach large values, say 1,000, they are equivalent to a census.

They will always contain some inaccuracy (sample error).

In trying to estimate the variability in the population in order to determine pq, which of the following represents viable alternatives? A) Use a random number generator to provide two random values for p and q. B) Use the most conservative approach, p = 10, q = 90. C) Use 90/10 or find a former study and calculate the variance or conduct a pilot study. D) Use 1/5 or find a former study and calculate the variance or conduct a pilot study. E) Use 50/50 or find a former study and calculate the variance or conduct a pilot study.

Use 50/50 or find a former study and calculate the variance or conduct a pilot study.

If you were conducting a telephone survey of households using random digit dialing numbers and you determined that you needed a sample size of 1,100, which of the following would be most accurate? A) You would need to obtain exactly 1,100 telephone numbers to call. B) You would need to obtain far less than 1,100 telephone numbers because you know that many will not answer or cooperate anyway. C) You will need some multiple of the 1,100 numbers in order to ensure you account for factors such as numbers that are for business phones, ineligible households (incidence rate), and those numbers dialed whose owners refuse to participate. D) You will need only a few extra numbers to allow for those who have moved away. E) You start off with 1,100; there is no way to determine approximately how many numbers you will actually need.

You will need some multiple of the 1,100 numbers in order to ensure you account for factors such as numbers that are for business phones, ineligible households (incidence rate), and those numbers dialed whose owners refuse to participate.

In sample size formulas, the symbol "e" stands for: A) estimated parameter or desired confidence level. B) acceptable population equation. C) estimated statistic or desired variability. D) estimated confidence interval. E) acceptable sample error.

acceptable sample error.

If we were to graph the relationship of sample size (x axis) to sample accuracy (y axis), we would notice that: A) there is a linear relationship between size and accuracy. B) accuracy increases quickly, up to about sample size 500, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 2,000. C) accuracy increases quickly, up to about sample size 5,000, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 200,000. D) accuracy increases quickly, up to about sample size 50, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 100. E) We cannot graph sample size and accuracy because we must also include the level of confidence and the variability within the sample data.

accuracy increases quickly, up to about sample size 500, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 2,000.

The sample size determines: A) representativeness. B) accuracy. C) representativeness and accuracy. D) the population statistic value. E) the mean generated from the sample statistic.

accuracy.

Which of the following would be defined as the percentage of respondents that qualify for a survey based on criteria such as age, income, and race? A) demographic incidence B) geographic incidence C) demographic occurrence D) product incidence E) customer data

demographic incidence

You are going to use a purposive sample (a nonprobability sample) to collect data from fast-food restaurant customers. Which of the following concepts would be applicable to determining sample size? A) confidence intervals B) sample size formula for estimating a percentage C) sample size formula for estimating a mean D) estimating a population value within a stated percent of allowable error E) None of the above would be appropriate; sample size concepts and formulas are only applicable when probability sampling plans have been used.

estimating a population value within a stated percent of allowable error

In a study of the U.S. workforce population, a research company interviews 5,000 persons on a street corner in New York. If they decide to increase the sample size to 10,000, they would: A) increase the sample size and the representativeness of the sample. B) increase both sample accuracy and representativeness of the sample. C) increase only the representativeness. D) decrease the sample accuracy. E) increase the sample size, but the sample would still not be representative of the population.

increase the sample size, but the sample would still not be representative of the population.

One of the reasons why a marketing practitioner should have a basic understanding of sample size determination is because: A) many practitioners have a false belief that sample size doesn't determine a sample's representativeness. B) it helps managers to manage their resources better. C) a marketing manager should understand that a sample's representativeness is not related to its accuracy. D) the size of the sample is never a major cost factor. E) managers always have a "small sample bias"; they believe small samples are more accurate.

it helps managers to manage their resources better.

Sources of error that come from sources other than the sample selection method and sample size are referred to as: A) serious mistakes. B) nonsampling errors. C) errors caused by competitors. D) errors caused by clients. E) errors caused by statisticians.

nonsampling errors.

Which of the following is NOT a component needed for SSI's Formula for determining how many telephone numbers are needed? A) incidence rate B) completion rate C) working phone rate D) completed interviews required E) number of qualified interviewers

number of qualified interviewers

Political Research Associates has been hired to conduct a survey to determine the percentage of voters. If the election were held today, who would vote for Candidate X for president? Candidate X has not even announced her candidacy for president and there are no previous surveys that would indicate voter preferences. Still, Political Research Associates must estimate the variability in the population in order to determine the size of the sample they need for their survey for Candidate X. Which of the following would be the wisest choice for estimating variability? A) ±5 percent B) p = 1.96 C) q = 100 percent, p = 50 percent D) p = 50 percent, q = 50 percent E) n = 51 percent, q = 49 percent

p = 50 percent, q = 50 percent

If we are using the formula for calculating the sample size for estimating a percentage, the formula will contain: A) s. B) %. C) Z3. D) pq. E) N.

pq.

Which of the following is true with regard to variability? A) p is always less than q B) q is always less than p C) q=100%-p D) p and q are always equal E) p+q=1.96

q=100%-p

By applying the finite multiplier it is possible to: A) reduce the population and achieve the same accuracy level. B) reduce the sample size or achieve the appropriate accuracy level. C) reduce the sample size and achieve the same accuracy level. D) reduce the accuracy level and maintain the same sample size. E) None of the above; there is no "finite multiplier."

reduce the sample size and achieve the same accuracy level.

Unfortunately, many managers falsely believe that sample size is: A) related to proper data analysis. B) related to the representativeness of the sample. C) determined by computer programs. D) an irrelevant "statistical" technicality issue. E) related to the level of accuracy desired.

related to the representativeness of the sample.

If we are using the formula for calculating the sample size for estimating a mean, the formula will contain: A) s. B) %. C) Z3. D) pq. E) None of the above; there is no sample size formula for estimating a mean.

s.

A finite multiplier is used when the population, relative to the sample size, is: A) small. B) large. C) finite. D) variable. E) infinite.

small.

A study is to be performed for a local restaurant, McGuire's, and Mr. McGuire wants to know the awareness of the restaurant name as well as satisfaction with food, service, and prices. Furthermore, being in the restaurant business for many years, Mr. McGuire is certain that he has very different clientele depending on which meal and whether they are there during the weekdays or weekends. Therefore, he wants to know answers to these issues by subgroups such as those who have eaten lunch meals, dinner meals, weekday patrons, and weekend patrons. Given these analysis goals, which sample size approach should be considered? A) arbitrary approach B) conventional approach C) statistical analysis approach D) confidence percentage approach E) the cost basis approach

statistical analysis approach

An amusement park owner is considering a survey to determine customer preferences for a new water ride. The owner and the researcher discuss the concept of the level of accuracy. The owner accepts a level of accuracy of ±5 percent. Assuming that the survey finds that 70 percent of the survey respondents indicate they want the ride, what does having a level of accuracy of ±5 percent accuracy actually mean? A) that there will be a 5 percent chance that the owner will make the wrong decision as to whether or not to build the new water ride B) that the real percentage of the park's customers who prefer the new water ride falls between 0 and 5 percent C) that there is a 95 percent chance that the owner will make the right decision as to whether or not to build the new water ride D) that the real percentage of the park's customers who prefer the new water ride falls between 65 and 75 percent E) that there is a 5 percent chance, ±, that the owner will make the right decision

that the real percentage of the park's customers who prefer the new water ride falls between 0 and 5 percent

If we know the level of confidence (1.96 for 95 percent), variability estimates, and the size of a sample, there is a formula that allows us to determine: A) the costs of the sample. B) the size of the sample. C) the representativeness of the sample. D) p or q. E) the accuracy (sample error).

the accuracy (sample error).

If we are using the sample size formula to be used when estimating a mean and we are trying to determine e, we are trying to indicate: A) the allowable error. B) the proportion of s to S in the sample. C) the range of possible z scores in the population. D) the percentage of the respondents who will answer p. E) the percentage of the respondents who will answer q.

the allowable error.

The basic difference between an arbitrary and a conventional sample size determination is that: A) the conventional approach has no defensible logic, whereas the arbitrary approach appears to have faulty logic. B) the conventional approach doesn't appear to be logical, whereas the arbitrary approach has defensible logic. C) the arbitrary approach has no defensible logic, whereas the conventional approach is logical. D) the arbitrary approach has no defensible logic, whereas the conventional approach appears logical but is faulty. E) the arbitrary approach, though arbitrary, has sound logic, and the conventional approach has conventional support.

the arbitrary approach has no defensible logic, whereas the conventional approach appears logical but is faulty.

Which of the following is the theory that allows us to say that if we conducted a survey 1,000 times, and we were to plot the answers to our survey, the plot would appear as a normal curve? A) the central limit theorem B) the normal curve theory C) the normal limit theorem D) the confidence interval theorem E) the variability coefficient theory

the central limit theorem

Which of the following is the most correct method of determining sample size? A) percentage of population approach B) all that can be afforded approach C) all that time will permit approach D) using the "100" for local study; "1,000" for national study approach E) the confidence interval approach

the confidence interval approach

Sample accuracy refers to: A) the extent to which the sample is validated. B) the extent to which the sample statistics differ from the true population values the statistics represent. C) the extent to which the population statistics differ from the representativeness of the sample. D) a statistical concept that can be assessed only theoretically. E) how close the sample statistics match the predetermined values expected by management.

the extent to which the sample statistics differ from the true population values the statistics represent.

Sample size is related to the size of the confidence interval in that: A) the larger the sample size, the larger the confidence interval. B) the larger the sample size, the more normal the confidence interval. C) the smaller the sample size, the smaller the confidence interval. D) the smaller the sample size, the more uniform the confidence interval. E) the larger the sample size, the smaller the confidence interval.

the larger the sample size, the smaller the confidence interval.

A sample that has been determined by using a cost basis approach would be when: A) the manager has discussed the statistical analysis with the research project director. B) the manager has discussed the competitor's marketing results with the research project director. C) the manager has discussed the previous marketing study with the research project director. D) the manager has discussed the budget with the research project director and they have decided to spend "all they can afford" on the project. E) none of the above

the manager has discussed the budget with the research project director and they have decided to spend "all they can afford" on the project.

Which of the following samples have been determined by using the statistical analysis approach? A) the sample size needed to properly analyze subgroups B) 1,000 respondents C) between 1,000 and 1,200 respondents D) 200 respondents because each interview is $30 E) a former study's sample, which generated favorable statistics

the sample size needed to properly analyze subgroups

If we are using the sample size formula to be used when estimating a mean and we are trying to determine s, we are trying to indicate: A) the pq population mean. B) the variability in the population represented by the standard deviation. C) the sample size. D) the allowable error represented by the standard deviation. E) None of the above; the formula does not have an s.

the variability in the population represented by the standard deviation.

When attempting to balance the sample size with the cost of data collection, the textbook illustrated that it is helpful to: A) use an Excel spreadsheet. B) rely on financial leveraging. C) use a table that depicts data collection cost and sample error for different sample sizes. D) use a table that depicts data collection cost and the costs of computing different sample sizes. E) use a table that depicts data collection cost contrasted to the cost of not doing research.

use a table that depicts data collection cost and sample error for different sample sizes.

Dot Miller owns a small chain of dive shops. She is interested in knowing how many potential customers she will need to sample in several large cities within a three- to four-hour drive of her shops located on the California coast. She wants to estimate the mean response to a 10-point scale measuring the likelihood that they will subscribe to a dive package which, if they take advantage of all the dives, represents a savings of 50 percent over taking the dives individually. In estimating the standard deviation in the population for the formula for calculating the sample size for estimating a mean, Dot can: A) rely on the knowledge of other owners in the dive industry to share their knowledge of surveying scuba divers. B) use some prior knowledge about the population, undertake a pilot study or estimate the range, and divide by 10. C) use some prior knowledge about the population, undertake a pilot study or estimate the range (7), and divide by 6. D) undertake a pilot study using members of the dive population who live near the present dive shops. E) None of the above; if you do not have the actual standard deviation, you cannot use the formula.

use some prior knowledge about the population, undertake a pilot study or estimate the range (7), and divide by 6.

What three factors are needed to calculate sample size? A) variability, accuracy, and confidence level B) variability, accuracy, and population size C) accuracy, confidence level, and population size D) accuracy, population size, and costs E) variance, standard deviation, and dispersion

variability, accuracy, and confidence level

The only time the population size is important in the calculation of sample size is: A) always; all formulas include N, a count of the total population. B) when the population is very, very large. C) when the population is not normal. D) when the level of accuracy needs to be less than ±5 percent. E) when the population is small, relative to the sample size.

when the population is small, relative to the sample size.

95 percent of the observations under the normal curve fall within ________ times the sample error. A) ±1.64 B) ±1.96 C) ±2.58 D) ±95 E) ±1.95

±1.96

Jack McCombs is the owner of several Firehouse Subs sandwich shops in Anytown. He has been spending $200,000 a year in various media in Anytown in an attempt to build awareness of his stores. Instead of continuing to spend the same amount on advertising every year, Jack wants an assessment as to what he has gained from the advertising he has paid for. He is interested in knowing what percentage of the population in Anytown is aware of his store's name, menu, and locations — three factors for which he has attempted to build awareness. His advertising agency quoted him a price for a survey and told him they would use a sample size of 150, and that they were assuming 35 percent of the respondents would be aware of his advertising. Jack was reluctant to use the advertising agency to conduct the survey. He felt like he needed another firm so as to avoid any conflict of interest. He found a marketing researcher in town who was certified as a CPR by the Marketing Research Association. The CPR asked Jack how accurate he wanted the results of the survey to be. Jack said he wanted the percentage to be within ±3 percent of the real population percentage. Assuming he wanted to be 95 percent confident of the accuracy of the results, the CPR used the following formula to determine the accuracy of the survey recommended by the ad agency: ± sample error percent = 1.96 ∗ the square root of pq/n. Using the formula, what would be the sample error if Jack were to use the ad agency survey recommendation? A) ±3 percent B) ±4 percent C) ±5 percent D) ±6 percent E) ±7 percent

±7 percent