Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

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 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.

Question 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

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

Accepted Answer

The answer of Elaborate on the statement "Every multiple regression...

Question 14

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

Accepted Answer

The answer of What are the effects of two independent...

Question 15

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 16

A constant-elasticity demand function can be obtained by:

Accepted Answer

A) taking the logarithm of the dependent variable only. 
B) taking the logarithm of the independent variable(s)only. 
C) taking the logarithm of the dependent and independent variable(s). 
D) taking the reciprocal of the dependent variable(s).

Question 17

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 18

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

Accepted Answer

A) standard error of the estimated coefficient. 
B) F-statistic. 
C) partial F-statistic. 
D) t-statistic.

Question 19

Refer to Scenario 2.By examining the t-statistics associated with the regression coefficients, at the 5 percent significance level, which of the two independent variables are statistically different from zero?

Accepted Answer

The answer of Refer to Scenario 2.By examining the t-statistics...

Question 20

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.

Exam 4: Techniques for Understanding Consumer Demand and Behavior

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.

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

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:

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

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 coefficient of determination is defined as the:

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

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

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

The coefficient of determination will range between what values?

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

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

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

A constant-elasticity demand function can be obtained by:

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:

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

Refer to Scenario 2.By examining the t-statistics associated with the regression coefficients, at the 5 percent significance level, which of the two independent variables are statistically different from zero?

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?