Marketing Research GSU Midterm Study Guide

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The basic steps recommended in hypothesis testing, in the correct order, are

conceptualize a null hypothesis, raise the question of the probability that the empirical evidence supporting the original position could have been a statistical accident, develop and analyze data, calculate the p-value.

Analysis of association between two nominally scaled variables is called

cross tabulation

Income Type of oven owned Less than $10,000/year More than $10,000/year TotalConventional150100250Microwave2075125Total 200175375 The table shown above is an example of

cross-tabulation

It is generally easier to code open-ended questions as compared with closed-ended questions because the researcher has more options with open-ended questions.

False

Nominal-scaled data is the best from the perspective of data analysis

False

Omissions refer simply to the errors resulting from the failure of interviewers to ask all questions.

False

The coding of closed-ended questions involves judgment decisions.

False

The greater the p-value, the higher is the researcher's confidence in the research findings.

False

The larger the degrees of freedom, the lower is the likelihood of observing differences among the variables.

False

The null hypothesis associated with the sample Chi square statistic is that the two (intervally scaled) variables are statistically independent.

False

The p-value is independent of the sample size.

False

The process of hypothesis testing, begins with an assumption about a sample statistic

False

The p‐value generally is sensitive to sample size, in that if the sample size increases, the p‐value usually will become larger.

False

Two branches of a major multinational corporation conducted surveys to measure the association between income level (low, mid, high) and need for a certain produce (low, mid, high). The sample size in one survey was 100 and in the other, 200. The branches now wish to compare the two cross tabulations that were generated from the surveys. Given this information, the Chi square statistic would provide an easy-to-interpret method to compare the associations.

False

When the data is collected on a nominal scale, the researcher can only use the mean and percentages to make meaningful conclusions.

False

While analyzing his data, Mr. Thorough decided to use a frequency distribution to study the response to each question. Later he became interested in finding out if there were any significant differences between the three subgroups in his study. The appropriate technique at this stage is the difference between means.

False

The manager of the marketing division of Acme Corporation forecasts an average monthly sales in 1978 of $65,000. In the first seven months of 1978, the average monthly sales were $63,200, with a standard deviation of $500. The management wishes to test the hypothesis Ho that "statistically" the manager was right (Ho:μ = 65,000) against the alternative hypothesis that he was wrong in his forecast (Ho: μ = 65,000), using a two-tail test. Assuming normal distribution of monthly sales, which of the following statements is true?

Ho is rejected at both the 5 percent and 1 percent significance levels.

What inferences about the relation between income and oven ownership may be drawn from the data above?

No inferences can be made without performing a hypothesis test.

A procedure in which the variables are brought to a mean of 0, and a standard deviation of 1 is called

Standardization

Degrees of freedom refers to the number or bits of free or unconstrained data used in calculating a sample statistic.

True

Hypothesis testing of a difference between means can help a researcher decide whether a certain difference was obtained merely by chance or because of differences in the underlying populations.

True

If a researcher's objective is to analyze a single question for various subgroups, based on a frequency distribution, the technique is termed cross-tabulation.

True

If the p-value is less than or equal to 0.05, then it is valid to say that the sample evidence is significant at .05 level.

True

In a hypothesis test when alpha is pre-specified, the researcher is trying to determine Is the probability of what has been observed lesser than alpha? and then decide accordingly.

True

In an ANOVA test, between-treatment variance corresponds to the variance in the response variable for different treatments.

True

In an ANOVA test, within-treatment variance corresponds to the variance in the response variable for a given treatment.

True

In one-way ANOVA, we primarily look to determine whether or not there are any statistically significant differences between the treatment means.

True

Multivariate analysis can be used to group variables or people or to understand the relationship between variables.

True

Product usage is a useful variable when a researcher is seeking to segment the population.

True

Scale transformation involves the manipulation of scale values to ensure compatibility with other scales

True

The ANOVA table is a conventional way to present a hypothesis test regarding the difference between several means.

True

The Chi square test can provide a useful measurement of association.

True

The Chi square test cannot be used to ascertain whether the observed pattern fits with the expected pattern.

True

The basic purpose of data analysis is to extract meaning and knowledge from the collected data.

True

The decision to combine certain categories is dependent upon the ease with which this can be done and the number of original categories.

True

The difference between means is concerned with the association between two questions, the question defining the group (for example, smokers or nonsmokers) and another question (fear of fires).

True

The higher the significance level used for testing a hypothesis, the higher is the probability of rejecting the null hypothesis when it is true.

True

The hypothesis test serves to quantify the reliability of research results, indicating the extent to which the data support the empirical findings.

True

The purpose of hypothesis testing is not to question the computed value of the sample statistic but to make a judgment about the difference between that sample statistic and the hypothesized population parameter.

True

The t-test is more sensitive to violations of equal the equal-variance assumption.

True

Type II error occurs when the null hypothesis is not rejected when it is false.

True

When cross-tabulating data, the objective of the researcher is to learn how the response variable varies from subgroup to subgroup.

True

If the researcher, in making a statistical test, rejects a true hypothesis, the error is called

Type 1 error

Assume you are doing a chi-square test for independence between class and grade. Given the following data collected by sample survey methods, answer the following questions. If the computed χ2 value for this table was 8.7 and the value from the back of the book with the correct degrees of freedom was 9.49 with α = 0.05 you would

accept the null hypothesis that grade and class are independent

If the F-value from this table was .19 and the table value from the back of the book was 3.89, you would

accept the null hypothesis that the explained variance = 0

To overcome the problem of the chi-square value being directly proportional to the sample size, the following measure(s) has (have) been developed:

all of the above

The process of editing the data involves

all of these.

The correlation between sales and radio ad budget

is less than .75

There are ______ degrees of freedom associated with a sample variance.

n-1

Cross-tabulation is the analysis of association between two variables that are nominally scaled.

True

A subscription service stated that preferences for different national magazines were independent of geographical location. A survey was taken in which 300 respondents randomly chosen from three areas were given a choice among three different magazines. Each person expressed his or her favorite. The following results were obtained: Suppose the chi-square value for the above test is 15; this will yield a significance level closest to the value

.05

Assume you are doing a chi-square test for independence between class and grade. Given the following data collected by sample survey methods, answer the following questions. What is the probability of making a C and being in class II ?

.10

What is the value of rho from these data?

.42

Given the following 2 X 2 contingency table: What would the overall chi-square value be for the whole table if the expected value for the Q1 yes - Q2 yes cell was equal to 23?

0.0

The criterion (criteria) to use while making the decision to reject or not to reject the null hypothesis is (are) significance level number of degrees of freedom one or two tailed test

1

A researcher might want to do multivariate analysis for which of the following legitimate reasons? 1. To be able to group variables or people 2. To help improve predictive validity 3. To compare the difference between two means 4. To make the results look more meaningful and impressive to management

1 and 2

ABC Incorporated asked a sample of residents in each of two cities to indicate the brand of shampoo most preferred by them. They found that 40 percent of the people in City 1 preferred Brand A, as compared with 30 percent in City 2. The results indicate that 1. Brand A is more popular with the sample respondents in City 1. 2. Brand A is more popular with the residents in City 1. 3. a hypothesis test of the significance of the difference in sample percentages is needed before any conclusions about differences in population can be made.

1 and 3

New Products Incorporated ran a test market for their latest product in two markets, City A and City B. Both have equal populations. The average weekly sales were $1,000 and $800, respectively, in the two cities. Based on this information, we can say that sales in City A are significantly higher than sales in City B. the difference in the sales level could be due to a sampling error. the difference in the sales level may be due to the fact that the residents of City B accepted the product to a lesser degree than those of City A.

1 and 3

While editing the data collected in a survey to determine the psychographic profiles of heavy users of cereals, some of the responses were found to contain omissions, ambiguities, and errors. The researcher should do which of the following? 1. Try to recontact the respondents (if feasible) and obtain clarification. 2. Throw out those questionnaires which have many errors or errors involving crucial questions. 3. Ignore questionable responses while making use of the remainder of a respondent's data. 4. Use intuition and common sense to revise erroneous responses, based on an educated assessment of how a respondent should have answered.

1, 2, or 3

The limitation of chi square as an association measure is it is hard to compare cross-tabulations with different sample sizes. it doesn't indicate how the variables are related. it is difficult to obtain a feel for its value (since it has no upper bound).

1, 2, or 3.

What F-value do you find from this table?

1.6

Assume you are doing a chi-square test for independence between class and grade. Given the following data collected by sample survey methods, answer the following questions. What is the expected value of the cell representing a grade of B for class II ?

10

How many subjects participated in this experiment?

16

A subscription service stated that preferences for different national magazines were independent of geographical location. A survey was taken in which 300 respondents randomly chosen from three areas were given a choice among three different magazines. Each person expressed his or her favorite. The following results were obtained: If the appropriate null hypothesis for a chi-square test were not rejected, the following would be implied: 1. Subscription for magazine X = subscription for magazine Y = subscription for magazine Z. 2. The probability of magazine preference (unconditional on location) is equal to the probability of magazine preference (conditional on location). 3. Magazine preferences are uncorrelated with location.

2 and 3

Intention to BuyNumberWill buy as soon as product is introduced80Will see the price of the product at introduction and then Decide120Will Purchase if others using it seem satisfied75Will certainly not purchase125 The percentage of people who say that they will buy the product as soon as it is introduced is: (1) less than that of those who will purchase if others seem satisfied; (2) 20 percent; (3) 2/3 of the percentage of people who will check the price before purchasing.

2 and 3

The F-value you would look up in the back of the book would be found with degrees of freedom F ____, ____

2, 12

The process of data analysis involves 1. editing and coding the data. 2. collecting the data. 3. tabulating each question. 4. estimating differences between means.

2, 3, and 4

Assume you are doing a chi-square test for independence between class and grade. Given the following data collected by sample survey methods, answer the following questions. If the expected value for a grade of A for a class II was 3, the cell's chi-square would be.

3

Consider the following table: (This table represents the heights and basketball team memberships of high school students in a small mid-western town.) 1.The expected percentages of basketball players in the population are 70, 80, 50, 40, and 30, respectively. 2.The estimated number of students in the city's high schools playing basketball, based on the various samples, is 105, 160, 125, 80, and 75. 3.The estimated total number of basketball players in the city's high schools is 545. 4.The (weighted) average height of the city's basketball players is different from the average height of the sample.

3

For the data above, which of the following statements is true? 1. The χ2 statistic is 4.167. 2. The χ2 statistic is 6.25. 3. The p-value is less than 0.01.

3

Which of the following would be the most likely plot of the data points?

3

Given the following 2 X 2 contingency table, what would be the expected number of people that said yes to both the questions if your null hypothesis stated that you expected an equal number in all cells?

30

A subscription service stated that preferences for different national magazines were independent of geographical location. A survey was taken in which 300 respondents randomly chosen from three areas were given a choice among three different magazines. Each person expressed his or her favorite. The following results were obtained: The number of degrees of freedom is

4

Assume you are doing a chi-square test for independence between class and grade. Given the following data collected by sample survey methods, answer the following questions. The degrees of freedom for this table is

4

Rho = .20 and there were 9 groups What was the unexplained variation in this study?

640

Rho = .20 and there were 9 groups What is the degrees of freedom for the explained variation?

8

Consider the following table: Height Number of people 74 in. 72 70 68 66 10 5 12 5 10 Total 42 The percentage of people with a height of 74 in. is close to 24 percent. The average height of the sample is 70 in. Most of the people in the sample are taller than or as tall as 70 in. The most common height (mode) in the sample is 70 in. All of these are true.

All of these are true

The Berkeley Supermarket buys its supplies of potatoes from two different farms, A and B. In a recent sampling test, it was found that the sample taken from Farm A had a mean weight of 10 ounces per potato, whereas the sample from Farm B had a mean weight of 10.3 ounces. In view of this test, is there a statistically discernible difference (at the 95 percent confidence level) between the mean weights of the potatoes of the two farms?

Both the standard deviations and sample sizes must be known before the above question can be answered.

A high p-value means that the probability of a statistically significant difference is high.

False

A major advantage of the Chi square statistic as a measurement of association between two questions is that it is independent of the sample size, making it easy to interpret in an absolute sense.

False

A researcher made the following claim: The correlation between the weight of a car and its mileage is 45. Without additional information, it is impossible to say whether this claim is true.

False

A researcher who uses a frequency distribution or a single number will necessarily reach the same conclusion.

False

Consider the diagram below: The correlation between sales and advertising is close to 1.0.

False

Data analysis is a powerful aid to gaining useful knowledge and it can help an investigator rescue even poorly conceived research.

False

Hypothesis testing can be used to establish whether the null hypothesis is true or false.

False

If a research study is well designed, then the researcher is assured of clear judgments and conclusions leading to good decisions, even if the data analysis techniques aren't entirely appropriate.

False

In an ANOVA test, if the between-treatment variance is lesser than the within-treatment variance.

False

In order to reduce the probability of committing a Type II error, the probability of committing a Type I error must necessarily decreased

False

In weighting, categories that are underrepresented in the sample are given lower weights, while overrepresented categories are given higher weights

False

Which of the following is an underlying assumption for the ANOVA model?

The variance of the error effects is a constant

A frequency distribution simply reports the number of responses that each question category receives.

True

A good descriptive statistic of measuring the strength of association is to measure Rho, which is the proportion of variance accounted for in the sample data.

True

A p-value of .45 means that the evidence against the null hypothesis is very weak.

True

An interaction effect means that the impact of a specific treatment will not be the same for each condition of the other treatment in the ANOVA analysis.

True

Assuming the hypothesis to be true, the significance level indicates the percentage of sample means that are outside the cutoff limits.

True

The rejection rule is

reject the null hypothesis in favor of the alternative hypothesis

To measure the difference between means or the difference between independent sample proportions, one would probably use which statistical technique?

t-test

Which one of the following is not an assumption underlying a test statistic?

the two populations are of equal size

Accepting a null hypothesis when it is false is called a(n)

type 2 error

The process that is used to make the sample data more representative of the population that has been surveyed is called

weighting


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