L12-2
Listed below are several correlation coefficients and their respective p-value. If we use 0.05 as the level of significance, which correlation coefficient demonstrates an association that is significant? .22, .06 .75, .04 .32, .15 .76, .95 .05, 1.00
Correct Answer .75, .04
Use the following information to answer the next 4 questions. The manager of the local Jimmy John's store is interested in understanding whether sales are positively associated with customer satisfaction. If so, she wants to allocate more dollars on improving customer satisfaction. She collected monthly customer satisfaction (X) and monthly sales (Y) for consecutive 6 months. She finds thata) the covariance between customer satisfaction and sales is 4 (sxy= 4)b) the standard deviation of customer satisfaction is 2.5 (sx = 2.5)c) the standard deviation of monthly sales is 2 (sy = 2) What is the correlation between customer satisfaction and sales? 0 0.5 1 -0.8 0.8
Correct Answer 0.8
What is the computed statistic depending on the answer to the previous question? 2.67 1.33 2.5 15 None of the above.
Correct Answer 2.67
What type of hypothesis test should we use to test whether the correlation between customer satisfaction and sales is statistically significantly greater than zero or not? A one-tailed z test. A one-tailed t test. A two-tailed t test. Chi-square test. A two-tailed z test.
Correct Answer A one-tailed t test.
Which of the following are caveats of correlation? It's use is limited to interval or ratio variables. It examines the association between only two variables. Do not assume cause and effect. It is limited to linear relationships. All of the above.
Correct Answer All of the above.
20) What are the null and alternative hypotheses if we want to test whether the correlation between customer satisfaction and sales is statistically significantly greater than zero or not? A) H0: rxy = 0; H1: rxy > 0 B) H0: rxy = 0; H1: rxy < 0 C) H0: rxy = 0; H1: rxy ≠ 0 D) H0: rxy = 0.8; H1: rxy > 0.8 E) H0: rxy = 0.8; H1: rxy ≠ 0.8 Option A Option B Option C Option D Option E
Correct Answer Option A
The advertising director in your firm announced her resignation this morning to take another job, and she is leaving this afternoon. Your boss has asked you to take charge of advertising. Unfortunately, you learn the former director was just beginning planning for an upcoming promotion of one of the company's new products. Your immediate decision is to determine a brand name for the product. As the former director leaves, she stops by to drop off some marketing research reports she had just received, which includes several tests on brand names that were proposed for the new brand. The research company tested 30 potential brand names. For each brand name, they collected data on a number of variables such as "intention to purchase" and "attitude toward the brand name." All these variables were collected using 5-point intensity continuum scales. Thus, all the variables possess an interval level of measurement. Just focusing on the two variables mentioned ("intention to purchase" and "attitude toward the brand name"), what type of analysis would you conduct to help you make the decision? Pearson product moment correlation analysis independent samples t tests cross-tabulation cross-tabulation with chi-square tests paired samples tabulation analysis
Correct Answer Pearson product moment correlation analysis
Based on the t table at the end this study guide, should the manager of the local Jimmy John's store spend more on improving customer satisfaction and why? She should spend more on improving customer satisfaction because we find statistical evidence that customer satisfaction is positively associated with sales. She should NOT spend more on improving customer satisfaction although we find statistical evidence that customer satisfaction is positively associated with sales. She should NOT spend more on improving customer satisfaction because we do not find statistical evidence that customer satisfaction is positively associated with sales. She should NOT spend more on improving customer satisfaction because customer satisfaction is negatively associated sales. We do not have enough information to make the decision.
Correct Answer She should spend more on improving customer satisfaction because we find statistical evidence that customer satisfaction is positively associated with sales.
If the correlation between two variables X and Y is equal to -0.9 and is significant, which of the following is TRUE? The variable X and Y are highly related, whereby a positive change in X is accompanied by a positive change in Y. The two variables X and Y are not related to one another. The variable X and Y are highly related, whereby a negative change in X is accompanied by a positive change in Y. The coefficient of determination between X and Y is equal to -0.81. Both C and D are true.
Correct Answer The variable X and Y are highly related, whereby a negative change in X is accompanied by a positive change in Y.
Which of the following is NOT true of a scatter diagram? It plots data pairs in an x- and y-axis graph. It will portray the amount of covariation between two metric variables. It plots the points corresponding to each matched pair of x and y variables. When there is no apparent association or relationship between two variables, the points on a scatter diagram fail to create any identifiable pattern. There is no relationship between scatter diagrams and correlation coefficients.
Correct Answer There is no relationship between scatter diagrams and correlation coefficients.
Michelle Steward is a marketing professor at Wake Forest University. Michelle had been asked by the administration to study a sample of classes at Wake to help the university understand the student population better particularly in terms of factors that differentiate students with high versus low GPAs. One of the questions asked was: "What score did you earn (0 to 100) on the last test that you took?" and another question in the study asked "How much time, estimated in numbers of minutes, did you study for the last test you took?" Michelle decided to run a correlation analysis on these two questions. When she did, she also run a one-tailed t test. The result shows that the correlation between both variables is 0.98 and the p-value is 0.0001. Michelle knew that this meant: There was a significant non-linear association between the two variables. There was the presence of an association because the probability of supporting the alternative hypothesis is very low, less than 1 percent. There was the presence of a negative association; the probability of supporting the null hypothesis that there is no association is only .01 percent. There was the presence of a positive and significant association between the variables. None of the above; Michelle should not have run a correlation because the two variables are both categorical (aka nominal).
Correct Answer There was the presence of a positive and significant association between the variables.
You are an officer in your college's Student Marketing Association. You are looking for ways to ensure that members will join again the following year. Students tend to join for one semester or one year and then drop out. You decide to take a simple random sample of this year's members and give them a survey. One of the questions asks: Will you join the SMA next semester? Yes, No, Don't Know. Another question asks respondents to check all the following that they feel provides them with "value" by virtue of being in the SMA: free food at meetings, getting to socialize in a relaxed setting with fellow classmates, learning about businesses through the guest speaker program, getting job search information through the organization's "Career Search" program, and getting to know your professors on a more personal basis. You want to know which of these are related to whether or not students will join the SMA in the next semester. What analysis should you run? association analysis between the question that asks if they will join and each one of the remaining questions descriptive analysis between the question that asks if they will join and each one of the remaining questions predictive analysis between the question that asks if they will join and each one of the remaining questions determinant analysis between the question that asks if they will join and each one of the remaining questions None of the above; there is no analysis that will help identify which of these issues are related to rejoining the SMA.
Correct Answer association analysis between the question that asks if they will join and each one of the remaining questions
Pontiac wants to know what types of persons respond favorably to proposed style changes in the Firebird. Frito-Lay wants to know what kinds of people buy from the Frito-Lay line. These are questions that may be answered through: relationship analysis. test of population mean. association analysis. analysis of variance. regression analysis.
Correct Answer association analysis.
The Pearson product moment correlation measures the linear relationship between two: nominal- or ordinal-scaled variables. nominal- or interval-scaled variables. interval- or ratio-scaled variables. nominal- or ratio-scaled variables. ordinal- or interval-scaled variables.
Correct Answer interval- or ratio-scaled variables.
The stronger a relationship the: larger the absolute size of the correlation coefficient larger the strength coefficient closer to zero is the correlation coefficient larger, positive size of the correlation coefficient larger the beta
Correct Answer larger the absolute size of the correlation coefficient
If we were to graph two variables, let's say, height (in inches) and GPA, and the graph showed points scattered about in a formless shape, we could say there is: likely no significant association between height and GPA likely a positive association between height and GPA likely a negative association between height and GPA a need to re-graph the data likely a curvilinear association between height and GPA
Correct Answer likely no significant association between height and GPA
A researcher runs a correlation analysis between two variables that she is certain are associated but the analysis indicates the two variables are not associated. The researcher may then want to: run another association test and add three variables adopt a lower standard for determining significance, that is, a p value of .20 do nothing; if the association is deemed insignificant it is inappropriate to run further analyses run a scatter plot in search of a non-linear relationship run a scatter plot in search of a linear relationship
Correct Answer run a scatter plot in search of a non-linear relationship
Let's assume we find in a study that the correlation coefficient between number of years of education and cigarette smoking is -.89. This means that as education level increases: smoking tends to increase. smoking tends to decrease. smoking changes 89 percent. smoking is nonexistent. only 89 out of every 100 people in the study would not smoke.
Correct Answer smoking tends to decrease.
Assume you run a correlation analysis and there is a significant relationship. What can you use to determine how strong the relationship is? the strength coefficient, which ranges from 1 to 10, with 10 being the strongest the strength coefficient, which ranges from 1 to 5, with 5 being the strongest the size of the correlation coefficient the size of the beta none of the above; correlation is not measured in terms of strength
Correct Answer the size of the correlation coefficient
The manager of the city's professional hockey team conducted a large survey. He wanted to know if there was an association between fans being "season ticket holders" versus "nonseason ticket holders" and whether they "bought" versus "didn't buy" hockey team merchandise at the game. Because his survey included these measurements, he ran a Pearson product moment correlation coefficient that turned out to be .88 with a Sig. value of .001. This meant that: there is no significant relationship. there is a significant, strong, positive relationship. there is a significant, strong, negative relationship. there is a significant, very strong, positive relationship. None of the above; Pearson's product moment correlation is not the appropriate measure of association here because both variables are nominally scaled.
Correct Answer there is a significant, very strong, positive relationship.
Let's assume we run a correlation analysis, and we get a correlation coefficient of .941 and a p-value of 0.000. These figures mean: there is 94.1 percent probability for supporting the null hypothesis. there is little or no probability for supporting the null hypothesis. there is little or no probability for supporting the null hypothesis, and there is a strong negative association. there is little or no probability for supporting the null hypothesis, and there is a strong, positive association. that more information is needed.
Correct Answer there is little or no probability for supporting the null hypothesis, and there is a strong, positive association.
Associative analyses determine whether stable relationships exist between: costs and expenses. two variables. 12 or more variables. marketing and sales. statistics and results.
Correct Answer two variables.
If a correlation coefficient is not statistically significant: you can still use the size of the coefficient to indicate the amount of the association though you know it is not significant. you can use the direction of the coefficient to indicate the nature of the association though you know it is not significant. you must assume the correlation is zero; the coefficient has no meaning at all. you should rerun the analysis to see if the beta is significant. none of the above; all coefficients are statistically significant.
Correct Answer you must assume the correlation is zero; the coefficient has no meaning at all.