Question 1

The coefficient of determination will range between what values?

Accepted Answer

A)  0 and 1 
B)  -1 and +1 
C)  -3 and +3 
D)  none of the above 
A)  0 and 1 
B)  -1 and +1 
C)  -3 and +3 
D)  none of the above A

Question 2

Cross-section data observed at several points in time are called inverted data.

Accepted Answer

A) True 
 B)False  False

Question 3

The coefficient of determination is .90, the number of observations is 30, and a multiple regression model using 2 independent variables is estimated. What is the value of the adjusted coefficient of determination?

Accepted Answer

A)  .8926 
B)  .9000 
C)  .7500 
D)  .8000 
A)  .8926 
B)  .9000 
C)  .7500 
D)  .8000 A

Question 4

An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?

Accepted Answer

A)  1 
B)  2 
C)  0.5 
D)  5 
A)  1 
B)  2 
C)  0.5 
D)  5

Question 5

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 total sum of squares?

Accepted Answer

A)  3860.8 
B)  3718.9 
C)  141.9 
D)  none of the above. 
A)  3860.8 
B)  3718.9 
C)  141.9 
D)  none of the above.

Question 6

The t-test is used to test hypotheses concerning the regression coefficients.

Accepted Answer

A) True 
 B)False

Question 7

Conjoint analysis employs an approach to consumer behavior that is similar to the economic indifference curve model.

Accepted Answer

A) True 
 B)False

Question 8

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?

Accepted Answer

A)  When the product can be packaged with a variety of price and quality combinations. 
B)  When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive. 
C)  When the level of economic activity can have a significant effect on the demand for the firm's output. 
D)  When the product being marketed is relatively new. 
A)  When the product can be packaged with a variety of price and quality combinations. 
B)  When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive. 
C)  When the level of economic activity can have a significant effect on the demand for the firm's output. 
D)  When the product being marketed is relatively new.

Question 9

The degrees of freedom in a regression equation is the number of observations minus the number of estimated coefficients.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

Accepted Answer

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

Question 11

The ratio of the regression coefficient to its standard error is called:

Accepted Answer

A)  t-statistic. 
B)  F-statistic. 
C)  partial F-statistic. 
D)  coefficient of determination. 
A)  t-statistic. 
B)  F-statistic. 
C)  partial F-statistic. 
D)  coefficient of determination.

Question 12

Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information. In many situations, however, it is subject to several sources of bias that can undermine its reliability.

Accepted Answer

A) True 
 B)False

Question 13

The coefficient of determination is the proportion of the variation that is not explained by the regression model.

Accepted Answer

A) True 
 B)False

Question 14

You have the following demand equation for a pack of cigarettes: Q = 200 - 0.30P with the average quantity 3 packs and average price $3.00 per pack. What is the price elasticity?

Accepted Answer

A)  0.30 
B)  -0.30 
C)  1.0 
D)  -1.0 
A)  0.30 
B)  -0.30 
C)  1.0 
D)  -1.0

Question 15

The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the

Accepted Answer

A)  variation not explained by the regression equation relative to the variation explained. 
B)  variation explained by the regression equation to the variation not explained. 
C)  variation explained. 
D)  variation not explained. 
A)  variation not explained by the regression equation relative to the variation explained. 
B)  variation explained by the regression equation to the variation not explained. 
C)  variation explained. 
D)  variation not explained.

Question 16

Price elasticities tend to be higher, the greater the number of substitutes.

Accepted Answer

A) True 
 B)False

Question 17

The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called an):

Accepted Answer

A)  F-test. 
B)  autocorrelation test. 
C)  multicollinearity test. 
D)  t-test. 
A)  F-test. 
B)  autocorrelation test. 
C)  multicollinearity test. 
D)  t-test.

Question 18

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider whether the participating groups are representative of the larger population.

Accepted Answer

A) True 
 B)False

Question 19

Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers.

Accepted Answer

Such studies illustrate the types of dat

Question 20

Which of the following statements is correct?

Accepted Answer

A)  The use of Census data is especially useful and cost-effective in targeted marketing. 
B)  Census data are considered more reliable than data collected via direct consumer surveys because people are more likely to provide accurate responses to government census takers. 
C)  While the use of census data in targeting marketing can provide relatively accurate information, experience has shown that it has the disadvantage of increasing marketing costs by a substantial amount. 
D)  While census data are considerably less expensive than data obtained via direct consumer surveys, they are also considerably less reliable. 
A)  The use of Census data is especially useful and cost-effective in targeted marketing. 
B)  Census data are considered more reliable than data collected via direct consumer surveys because people are more likely to provide accurate responses to government census takers. 
C)  While the use of census data in targeting marketing can provide relatively accurate information, experience has shown that it has the disadvantage of increasing marketing costs by a substantial amount. 
D)  While census data are considerably less expensive than data obtained via direct consumer surveys, they are also considerably less reliable.

The coefficient of determination will range between what values?

Cross-section data observed at several points in time are called inverted data.

The coefficient of determination is .90, the number of observations is 30, and a multiple regression model using 2 independent variables is estimated. What is the value of the adjusted coefficient of determination?

An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?

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 total sum of squares?

The t-test is used to test hypotheses concerning the regression coefficients.

Conjoint analysis employs an approach to consumer behavior that is similar to the economic indifference curve model.

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?

The degrees of freedom in a regression equation is the number of observations minus the number of estimated coefficients.

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

The ratio of the regression coefficient to its standard error is called:

Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information. In many situations, however, it is subject to several sources of bias that can undermine its reliability.

The coefficient of determination is the proportion of the variation that is not explained by the regression model.

You have the following demand equation for a pack of cigarettes: Q = 200 - 0.30P with the average quantity 3 packs and average price $3.00 per pack. What is the price elasticity?

The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the

Price elasticities tend to be higher, the greater the number of substitutes.

The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called an):

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider whether the participating groups are representative of the larger population.

Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers.

Which of the following statements is correct?

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters

Exam 4: Techniques for Understanding Consumer Demand and Behavior

The coefficient of determination will range between what values?

Cross-section data observed at several points in time are called inverted data.

The coefficient of determination is .90, the number of observations is 30, and a multiple regression model using 2 independent variables is estimated. What is the value of the adjusted coefficient of determination?

An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?

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 total sum of squares?

The t-test is used to test hypotheses concerning the regression coefficients.

Conjoint analysis employs an approach to consumer behavior that is similar to the economic indifference curve model.

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?

The degrees of freedom in a regression equation is the number of observations minus the number of estimated coefficients.

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

The ratio of the regression coefficient to its standard error is called:

Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information. In many situations, however, it is subject to several sources of bias that can undermine its reliability.

The coefficient of determination is the proportion of the variation that is not explained by the regression model.

You have the following demand equation for a pack of cigarettes: Q = 200 - 0.30P with the average quantity 3 packs and average price $3.00 per pack. What is the price elasticity?

The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the

Price elasticities tend to be higher, the greater the number of substitutes.

The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called an):

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider whether the participating groups are representative of the larger population.

Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers.

Which of the following statements is correct?

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters