Question 1

When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider how to isolate the effect of different variables that influence demand.

Accepted Answer

A) True 
 B)False

Question 2

The coefficient of determination is defined as the

Accepted Answer

A)  ratio of the total sum of squared errors to the sum of squared errors. 
B)  ratio of the regression sum of squares to the sum of the squared errors. 
C)  ratio of the sum of squared errors to the total sum of squared errors. 
D)  none of the above.

Question 3

The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?

Accepted Answer

A)  25 
B)  0.75 
C)  1.00 
D)  0

Question 4

Regression analysis is used for prediction, while correlation analysis is used to measure the strength of the association between two variables.

Accepted Answer

A) True 
 B)False

Question 5

The intercept of the equation: Y = .09 + 1.5X is 1.5.

Accepted Answer

A) True 
 B)False

Question 6

The total sum of squares equals the sum of squares of the variation explained by the regression and the sum of squares of the errors.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

Accepted Answer

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

Question 8

Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:

Accepted Answer

A)  simple regression analysis. 
B)  correlation analysis 
C)  multiple regression analysis. 
D)  cluster analysis.

Question 9

The number of observations minus the number of estimated coefficients in a regression equation is called:

Accepted Answer

A)  degrees of freedom. 
B)  variance. 
C)  standard error fo the regression. 
D)  none of the above.

Question 10

All of the following are limitations of direct consumer surveys except:

Accepted Answer

A)  the possibility that consumers' responses may not reflect their actual behavior in the market place. 
B)  the possibility of response biases because survey respondents may not want to reveal their true preferences. 
C)  the likelihood that respondents will deliberately and systematically mislead interviewers. 
D)  the possibility that the type of questions asked may unintentionally bias the respondent's answers.

Question 11

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

Accepted Answer

A)  a direct consumer survey. 
B)  contingent valuation. 
C)  the hedonic estimation technique. 
D)  conjoint analysis.

Question 12

In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that:

Accepted Answer

A)  the relationship between X1 and Y is significant. 
B)  the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, holding X2 constant. 
C)  the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, without regard to X2. 
D)  the estimated average value of Y is 2 when X1 equals zero.

Question 13

Cross-sectional data observed at several points in time is known as:

Accepted Answer

A)  time series data. 
B)  panel data. 
C)  experimental data. 
D)  none of the above.

Question 14

Adjusted R2 gives the actual percentage of the variation in the dependent variable explained by the regression model.

Accepted Answer

A) True 
 B)False

Question 15

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. Is the slope coefficient statistically different from zero?

Accepted Answer

A)  No. 
B)  Yes. 
C)  Inconclusive. 
D)  None of the above.

Question 16

The least squares regression is based on:

Accepted Answer

A)  maximizing the absolute sum of squares errors. 
B)  minimizing the absolute sum of squares errors. 
C)  maximizing the sum of squared errors. 
D)  minimizing the sum of squared errors.

Question 17

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?

Accepted Answer

A)  1.5, inelastic 
B)  -1.5, elastic 
C)  120, elastic 
D)  12, elastic

Question 18

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 coefficient of determination?

Accepted Answer

A)  1.000 
B)  0.000 
C)  0.037 
D)  0.324

Question 19

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

Accepted Answer

A)  prediction interval. 
B)  confidence interval. 
C)  logistic regression. 
D)  none of the above.

Question 20

Data collected on the same observation unit at a number of points in time are called:

Accepted Answer

A)  cross-section data. 
B)  time series data. 
C)  panel data. 
D)  none of the above.

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 how to isolate the effect of different variables that influence demand.

The coefficient of determination is defined as the

The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?

Regression analysis is used for prediction, while correlation analysis is used to measure the strength of the association between two variables.

The intercept of the equation: Y = .09 + 1.5X is 1.5.

The total sum of squares equals the sum of squares of the variation explained by the regression and the sum of squares of the errors.

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

Regressional analysis that analyzes the relationship between one dependent variable and one independent variable is called:

The number of observations minus the number of estimated coefficients in a regression equation is called:

All of the following are limitations of direct consumer surveys except:

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

In a multiple regression problem involving two independent variables, if b₁is computed to be +2.0, it means that:

Cross-sectional data observed at several points in time is known as:

Adjusted R²gives the actual percentage of the variation in the dependent variable explained by the regression model.

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. Is the slope coefficient statistically different from zero?

The least squares regression is based on:

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?

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 coefficient of determination?

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

Data collected on the same observation unit at a number of points in time are called: