MKTG 121 Exam 2

A department store asked a market researcher to examine the relationship between the percent change in the number of salespeople in its various departments and the corresponding percent increase in volume of sales. The marketer decided to use bivariate regression to evaluate the relationship. The results were as follows: R2 = .12 with a regression coefficient (b) of .004. Which of the following would be the best explanation for the market researcher to provide the department store manager?

12% of the variance in volume of sales is accounted for by variation in the number of salespeople.

Why is the null hypothesis called the hypothesis of the status quo?

Because it's the hypothesis tested in the "state in which of before" the complement. No difference, no effect; nothing new It is the hypothesis that will not be rejected, unless the data provide convincing evidence that it is false, thus maintaining the status quo.

Multivariate statistical techniques differ from bivariate techniques in that they:

Can demonstrate the relationship between more that two variables. Instead of fitting a straight line to observations in a two-dimensional space, multiple regression analysis fits a plane to observations in a multidimensional space. Multivariate is when more than two variables are involved. Bivariate, only two variables involved.

Bivariate regression can NOT demonstrate:

Definition of Bivariate Regression: analysis of the strength of the linear relationship between two variables when one is considered the independent variable and the other the dependent variable. When the two variables are causally related.

If you are studying the impact of training on salesperson performance as indicated on an exam taken by salespersons at the end of training, salesperson sales would be the ____________ variable, and salesperson exam score would be the _____________ variable.

Dependent; Independent

A researcher wants to include gender in her regression analysis. It is necessary for her to create a ___________ variable for gender.

Dummy

Which of the following is not a step in hypothesis testing?

Evaluating the randomness of the sample

Which of the following is NOT an evaluation measure in Market Basket Analysis?

Evaluation measures are: Support, Confidence, and Lift

Bivariate statistical techniques analyze the relationship between two or more variables.

False

Bivariate statistical techniques are often used to establish cause and effect relationships between two or more variables.

False

If the relationships we are investigating involve more than one independent variable, then we would want to use correlation analysis in lieu of regression analysis.

False

In multiple regression analysis the dependent variable is nominal or categorical.

False

When do you say the difference between two numbers is statistically significant?

If a particular difference is large enough to be unlikely to have occured because of chance or sampling error

What is the appropriate test statistic for making inferences about the population mean on the basis of a sample mean from a small sample?

T-test for one mean

Support in Market Basket Analysis is defined as _________________

The # of transaction in which that set of items occurs in the transactions file

Confidence in Market Basket Analysis is defined as _________________

The % of Antecedent that also have the consequent

Lift in Market Basket Analysis is defined as _________________

The Confidence of the rule divided by the percentage of the consequent

Which of the following statement regarding the R-square of the multiple regression analysis is NOT true?

These are all true: Identified as one of the outputs of regression analysis. It can assume values from 0 to 1 and provides a measure of the percentage of the variation in the dependent variable that is explained by the variation in the independent variables

What is the purpose of hypothesis testing?

To see if an assumption or theory guess that a researcher or manager makes about some characteristic of the population is right or wrong To calculate the probability of observing a particular result if the stated hypothesis is actually true

One reason for researchers to use ANOVA to compare different means is that

To test for the differences among means of two or more independent samples. To determine whether the variability among or across the C sample means is greater than expected because of the sampling error.

Collinearity is a situation in which independent variables are heavily correlated with each other.

True

Dummy variables are created to include nominally scaled independent variables such as marital status or race in multiple regression analysis.

True

It is possible to run a regression analysis with more than 1 independent variable.

True

The independent variables in multiple regression should not be correlated with each other.

True

Rejecting the null hypothesis when it is, in fact, true is called a ______________.

Type 1 Error

One checks the ____ in the SPSS output to see if there is collinearity among the X's in the Multiple Regression Model,

Variation Inflation Factor (VIF)

What is the meaning of testing a hypothesis at an alpha level of 0.05?

We can test with a 95% confidence level; anything below .05 is too low to justify acceptance of the null hypothesis There is a 5% chance or less that observed results are due to sampling error or because of sample randomness.

In a regression equation, which symbol represents the independent variable?

X

A marketer wants to produce a model, which will depict the relationship between changes in advertising expenditures and sales, and hence, whether more should be spend on advertising. Which of statistical techniques will produce a descriptive model of advertising and sales?

Simple/Bivariate Correlation Analysis

What is multivariate analysis?

A group of statistical procedures used to analyze simultaneously multiple measurements of the individual or object being measured.

In Market Basket Analysis, the IF part of decision rule is also called _________ and the THEN part of decision rule is also called __________

Antecedent

Which of the following bivariate techniques is appropriate for ratio or interval data?

Appropriate are: regression analysis, ANOVA, Z-test, Pearson's correlation.

In testing a hypothesis about means, if the sample size was less than 30, then the appropriate statistical test would be?

T-test

____________ is the mathematical technique for fitting a line that best describes the relationship between two variables.

Least Squares Procedure

If two independent variables (the x's) in a multiple regression model have high correlation, we say that the problem of ______ happens.

Multicollinearity

Collinearity is a potential problem in:

Multiple Regression Analysis

Suppose an analyst wanted to determine whether or not dollars spent on advertising, number of sales people, number of new products introduced and dollars spent on research and development were contributing to the growth in company market share. Which of the following procedures would be most appropriate?

Multiple Regression Analysis

Which of the following statements about Multiple Regression Model is NOT true?

Multiple regression fits in a plane that has observations in a multidimensional space. It is an extension of bivariate regression, under certain circumstances, nominal predictor variables can be used if they are recoded as binary variables. Basic purpose is predicting the level of the dependent variable, based on given levels of the independent variables. Solutions: New variable that is a composite of the others. Delete one of the two variables

The exact probability of getting a computed test statistic that was largely due to chance is referred to as the______________.

P-Value

(Per Graph) Which of the following explanations would you provide for your client?

Perfect linear association. The more money spent on promotion, the more products you will sell.

A regression equation that estimates the number of hours studying impact on test score would most likely produce what type of relationship?

Positive

Which of the following would not be an application best suited for multiple regression analysis?

Reducing a large number of potential predictor variables to a smaller set of composite variables

The change in the dependent variable given a one-unit change in the independent variable is expressed by the ________________.

Regression Coefficient

What is the underlying principle of the least square procedure?

Results in a straight line that fits the actual observations (dot) better than any other line that could be fitted to the observations. Put another way, the sum of the squared deviations from the line (squared differences between dots and the line)

Market Basket Analysis relies on data to identify ________for prediction

Rules

A market researcher observes the following graph depicting the relationship between sales promotion and sales:

Simple/Bivariate Correlation Analysis