Exam 4: Techniques for Understanding Consumer Demand and Behavior

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider whether the answers given in these formats represent actual market behavior.

Data collected on a sample of individuals with different characteristics at a specific point in time are called:

A measure of how much the coefficient would vary in regressions based on different samples is called:

The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to:

Elaborate on the statement "Every multiple regression analysis is influenced by the sample of the data used".

The overall predictive power of the estimated regression equation is measured by the F-statistic.

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 t-statistic for the slope coefficient?

Regression analysis that analyzes the relationship between one dependent variable and several independent variables is called:

The coefficient of determination represents the ratio of the regression sum of squares to the total sum of squares.

Log-linear demand function is also called a constant-elasticity demand function.

The statistical significance of the slope coefficient can only be tested using the F test.

Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?

What are the effects of two independent variables that are highly correlated? What can be done to remedy the problem?

Why are estimated models of demand and consumer behavior useful to managers?

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

Least squares regression minimizes the sum of the absolute errors.

An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market is called:

A constant-elasticity demand function can be obtained by:

Briefly describe the three key points managers must consider when using expert opinion, consumer surveys, test marketing, and price experiments in analyzing consumer behavior.

Adding an independent variable to a regression model will always reduce the coefficient of determination.