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Chapter 1 The Role of Business Research.

Chapter 1
The Role of Business Research

True-False Questions

F 1. Total quality management applies primarily to the marketing function of an


10 organization.

F 2. Business research provides quantitative, but not qualitative, information upon which to
8 base decisions.

F 3. Business research should be a substitute for managerial judgment, and not merely an
7 aid to this judgment.

T 4. Business research is a managerial tool that provides information essential for good
6 decision making.

T 5. The role of the business researcher is to be detached and impersonal concerning the
6 conduct of the research process.

T 6. Applying business research is an art, not an exact science.


7

F 7. Basic research directly involves the solution to a specific business problem.


7

T 8. Implementing a total quality management program can require considerable


11 measurement.
Chapter 1 The Role of Business Research. 2

F 9. When a decision must be made about a real-life business problem, this is called basic
7 research.

F 10. Findings from basic research can generally be immediately implemented.


7

F 11. Both basic and applied research are systematic and objective, but only basic research
7 utilizes the scientific method to answer the question at hand.
T 12. In the scientific method, empirical evidence (such as the results of a survey) is
7 analyzed and interpreted to confirm or disprove prior conceptions.

F 13. Investigating whether or not a 10 percent reduction in price will increase the purchase
7 of a new toothpaste in a pump dispenser is an example of basic research.

T 14. Because both basic and applied research utilize the scientific method, the difference in
7 techniques of basic and applied research is largely a matter of degree, rather than substance.

F 15. When the cost of research exceeds its benefits, the research should still be conducted if
13 the decision is a major organizational concern.

T 16. The task of business research is to specify and supply accurate information to reduce
8 the uncertainty of decision making.

F 17. While basic research applies the scientific method, applied research does not apply this
7 method.

T 18. The essence of business research is to fulfill the effective manager's needs for
6 knowledge of his or her environment.

F 19. We can define business research as "the application of surveys for aid in making
Chapter 1 The Role of Business Research. 3

6 business decisions."

T 20. The General Accounting Office research to measure the success of a program such as
10 the Employment Opportunity Act would be categorized as evaluation research.

T 21. Research that regularly, sometimes routinely, provides feedback for evaluation and
10 control of recurring business activity is performance-monitoring research.

T 22. Sometimes the urgency of a situation precludes the use of research.


12

T 23. Being systematic and objective may require that researchers be patient and take several
6 careful looks at the data to discover all that is known about the subject of study.

F 24. The differences in the techniques of basic and applied research is more a difference of
7 substance than a difference of degree.

F 25. The scientific method is utilized by basic researchers, while those engaged in applied
7 research tend to favor the strategic management process.
T 26. Business research can help managers to determine if a planned activity was executed
10 properly.

T 27. TQM focuses on integrating customer-driven quality decisions throughout the entire
10 organization.

F 28. In general, the more strategically important a business decision is to the organization,
12 the less likely it is that research will be conducted.

T 29. Business research may be used as a diagnostic tool to provide information about what
8 is happening in the environment.
Chapter 1 The Role of Business Research. 4

F 30. TQM stands for "typical query management."


10

F 31. TQM stands for "total quantity measurement."


10

F 32. Business research should never be conducted after a failure, because it is pointless to
10 study strategies that did not work.

T 33. The objective of business research is to facilitate decision-making for all of the
5 functional areas of the organization.

F 34. After a business strategy has been implemented, business research is no longer needed.
11

T 35. After a business strategy has been implemented, business research may serve as a tool
11 to inform managers whether planned activities were properly executed.

F 36. If a company is well managed, performance-monitoring research becomes


10 unnecessary.

Multiple Choice Questions


Chapter 1 The Role of Business Research. 5

D 1. Which of the following should a manager ask before deciding whether or not to do
13 business research?
A. Will the information obtained improve the quality of the decision enough to justify the costs?
B. Is this research project the best use of available funds?
C. Will the payoff from the research be worth the dollars invested?
D. All of the above

B 2. Based on an observation study, researchers at Steelcase concluded that:


3 A. most American employees prefer to stand up while working.
B. people in teams function best if they can do some work collaboratively and some privately.
C. two-thirds of business travelers rate home and family life as their most important motivator.
D. female executives are a growing market for travel services.

C 3. When the marketing department of an organization attempts to determine the amount


7 of time the managers in this department spend at their computers in their offices each week, this is an
example of which type of research?
A. Pure research
B. Basic research
C. Applied research
D. Causal research

D 4. Which of the following is involved in the decision-making process when an


8 organization attempts to develop and to implement a business strategy?
A. Selecting a course of action
B. Diagnosis of the situation
C. Identifying opportunities
D. All of the above

C 5. When Procter & Gamble continuously monitors supermarket sales of its products to
Chapter 1 The Role of Business Research. 6

10 track its market share, this is an example of:


A. evaluation research.
B. TQM research.
C. performance-monitoring research.
D. intuitive research.

D 6. The Steelcase research discussed in the text included all of the following EXCEPT:
3 A. video cameras.
B. observations of how work teams operate.
C. comparisons of collaborative and private work by team members.
D. using stop watches to evaluate workers' motions and patterns of behavior.

C 7. When deciding whether business research should be conducted, each of the following
12 factors is a major consideration EXCEPT:
A. time constraints.
B. availability of the data.
C. availability of company employees who are survey experts.
D. value of business research information in relation to its costs.

B 8. The formal, objective measurement and appraisal of the extent to which a given action,
10 activity, or program has achieved its objectives is called:
A. basic research.
B. evaluation research.
C. scientific research.
D. applied research.

B 9. Basic research is research that:


7 A. addresses simple issues that are basic and research is not really needed.
Chapter 1 The Role of Business Research. 7

B. attempts to expand the limits of knowledge for a discipline.


C. is conducted to make a decision about a specific real life problem.
D. all of the above

C 10. Which statement best describes the nature of basic research?


7 A. Basic research requires the use of experimentation.
B. The primary purpose of basic research is to facilitate the managerial decision process.
C. Basic research is conducted to verify the acceptability of a given theory.
D. Because basic research is exploratory, it does not require the use of scientific methodology.

B 11. Business research is defined as the and process of generating information for
6 aid in business decision making.
A. regular, routine
B. systematic, objective
C. systematic, routine
D. systematic, statistical

B 12. When Colgate-Palmolive Co. tracks the sale of its health and beauty aids in discount
10 stores by utilizing the information provided by scanners at the checkout lines, this is an example of
which type of research?
A. Basic research
B. Performance-monitoring research
C. Pure research
D. Intuitive research

B 13. The term research describes research that regularly, perhaps routinely, provides
10 feedback for evaluation and control of business activity.
A. decision support
B. performance-monitoring
Chapter 1 The Role of Business Research. 8

C. causal
D. analysis

C 14. When United Airlines routinely samples flights and passengers to administer a survey
10 of its activities, this is an example of which type of research?
A. Intuitive research
B. Pure research
C. Performance-monitoring research
D. Basic research

C 15. When a marketing manager makes an important decision because there is not sufficient
12 time to conduct a research project, this is an example of:
A. a situation in which the value of the research exceeds its costs.
B. the nature of the type of decision (tactical or strategic) that must be made.
C. a time constraint.
D. the availability of data.

D 16. Which of the following is an example of a major topic for business research?
15 A. A buyer behavior research study
B. A job morale study
C. A market segmentation study
D. All of the above
Chapter 1 The Role of Business Research. 9

B 17. Which of the following statements does NOT accurately reflect how managers
12 determine if research is needed?
A. Research may not be conducted because of time constraints.
B. Major decisions should only be made after research is conducted.
C. Managers who possess adequate information do not need research to make the decision.
D. Research should be conducted when the information gained by research improves the quality
of the decision to an extent large enough to warrant the expenditure.

C 18. When Ford Motor Co. brings together representatives from R&D, Finance, Marketing,
14 Sales, and Marketing Research to work together on the design of a new type of automobile, this is an
example of the use of
A. basic research.
B. pure research.
C. cross-functional teams.
D. evaluation research.

A 19. Whether business research should be conducted is determined by each of the following
12 EXCEPT:
A. employees' attitudes toward the subject of the research.
B. time constraints.
C. the nature of the decision to be made.
D. the benefits of the research in relation to its costs.

D 20. Which of the following is a reason why business research information is a valuable
10 resource that contributes to effective decision making?
A. It describes what is occurring in the marketplace.
B. It may provide detailed information about specific mistakes or why failures occurred.
C. It provides information to help managers learn about changing environments.
D. All of the above are reasons.
Chapter 1 The Role of Business Research. 10

B 21. The relationship between business research and a manager's experience can best be
12 described as:
A. business research and managerial experience are incompatible.
B. sometimes managerial experience alone should be relied upon.
C. no decision should be reached without using business research.
D. there is no relationship between experience and business research.

D 22. The primary function of business research is to:


6 A. provide the solution to a business problem.
B. attempt to predict future behavior.
C. identify personal needs.
D. provide information to assist managers in making decisions.

A 23. Select the best definition of business research.


6 A. A systematic and objective process of generating information for aid in
business decision making.
B. The collection and analysis of business data.
C. An operating department within the organizational structure.
D. Providing information that will be of use in identifying opportunities.

Fill in the Blank

1. Business research shows that employee satisfaction is strongly linked to


4 ______ satisfaction.

customer

2. Literally, "research" means to .


Chapter 1 The Role of Business Research. 11

6
search again

3. The term refers to a business philosophy devoted to integrating customer-


10 driven quality throughout an organization.

total quality management

4. Scanning items' universal product code (UPC) labels to evaluate sales volume is an
10 example of .

performance-monitoring research

5. Business research is the systematic and objective process of , . and data for
6 aid in business decisions.

gathering, recording, analyzing

6. Business research should be a(n) to managerial judgment, and not a substitute for
7 it.

aid

7. When a decision must be made about a specific real-life problem, research is


7 conducted.

applied
Chapter 1 The Role of Business Research. 12

8. When we want to expand the limits of knowledge, without directly involving the
7 solution to any particular pragmatic problems, we would conduct research.

basic (pure)

9. If we want to do a formal, objective measurement and appraisal of the extent to which


10 a given activity or program has achieved its objectives, we conduct research.

evaluation

10. Teams which are made up of representatives from finance, accounting, sales, R&D,
14 and marketing research are an example of a ________ team

cross-functional

11. The term describes techniques or procedures used to analyze empirical


7 evidence in an attempt to confirm or disprove prior conceptions.

scientific method

12. The largest business research company in the world is ________.


16
A.C. Nielsen

13. A manager determining whether business research should be conducted must consider
12 four major factors: . (Answer could be several words).

time constraints; availability of data; nature of the decision to be made; benefits of the research versus its
costs
Chapter 1 The Role of Business Research. 13

14. Continuous improvement of product quality and service is an important principle of


10 .

total quality management

Chapter 2
Information Systems and Knowledge Management

True-False Questions
F 1. The term, information, refers to facts or recorded measures of phenomena.
21

F 2. The term, data, refers to a body of facts that appear in a context that describes the
21 relationships between the facts.

T 3. An organized collection of computer hardware and software designed to capture, store,


22 update, analyze, and display information about an organization’s worldwide business activities is called
a global information system.

T 4. The purpose of a decision support system is to store data and to transform data into
22 organized information which is accessible to managers within the organization.

F 5. A decision support system is independent from the global information system of the
23 organization.

T 6. The inputs into a decision support system are raw, unsummarized data.
23
Chapter 1 The Role of Business Research. 14

T 7. A mailing list of current customers’ names and addresses is an example of a database.


23

T 8. A comprehensive collection of data which describes the extensive operations of an


24 organization is known as a data warehouse.

T 9. When the detailed data from the operations of an organization are extracted,
24 tranformed, and stored, we say that these data have been “warehoused”.

F 10. The input to a decision support system can include numerical and text data, but not
26 image data.

F 11. Input data into a decision support system can come from internal sources within the
26 organization, but not from sources external to the organization.

T 12. A statistical database can contain numerical data for sales forecasting.
27

T 13. EDI systems integrate the computer system of one organization with another
29 organization’s computer system.

T 14. Recent studies indicate that the Internet has more than 250 million users who have
29 access to a personal computer at home.

T 15. Internet users send messages to one another by means of e-mail.


29

T 16. The Internal Revenue Service has set up an Internet site from which it is possible to
30 download various income tax forms.
Chapter 1 The Role of Business Research. 15

F 17. The Internet has a single, central large mainframe computer.


31

F 18. The Internet is a single computer operation, not a collection of thousands of small
31 computer operations.

F 19. In the Internet, a host computer must be dedicated to one person and may not be shared
31 by several users.

T 20. An intranet is available only to users within the organization.


37

Multiple Choice Questions


B 1. Facts and recorded measures of phenomena are known as:
21 A. information.
B. data.
C. a database.
D. the Internet.

A 2. A body of facts in a format suitable for decision making is known as:


21 A. information.
B. the Internet..
C. a database.
D. data.

C 3. Knowledge management is frequently referred to as the organization’s:


Chapter 1 The Role of Business Research. 16

21 A. Intranet source.
B. Internet Web page.
C. intellectual capital.
D. database.

D 4. An organization’s global information system organizes and integrates data from which
22 of the organization’s functional areas?
A. Marketing
B. Finance
C. Production
D. All of the above

A 5. A mailing list of the names and addresses of an organization’s current customers is an


23 example of:
A. a database.
B. a global information system.
C. the Intranet.
D. the Internet.

B 6. A collection of computer data that gives the names, salaries, job titles, and addresses of
23 the organization’s current employees is an example of:
A. an Internet application.
B. a database.
C. a Web page.
D. the Home page.

D 7. Data from which of the following functional areas of an organization can be included
23 in an internal database of the organization?
A. Manufacturing
B. Payroll.
Chapter 1 The Role of Business Research. 17

C. Sales
D. All of the above

B 8. Which of the following is a Web browser?


31 A. Yahoo
B. Netscape Navigator
C. Excite
D. hotmail

D 9. Input to an organization’s decision support system can include which of the following?
26 A. Voice
B. Images
C. Text
D. All of the above

D 10. Which of the following can provide input to an organization’s decision support
26 system?
A. Sales personnel
B. Accountants
C. Business researchers
D. All of the above

C 11. A worldwide network of computers that supports electronic communication and gives
29 users from different organizations access to information and documents from distant sources is called:
A. the Intranet.
B. the Home page.
C. the Internet.
Chapter 1 The Role of Business Research. 18

D. the domain..

C 12. Which of the following is the world’s largest public library?


29 A. The Intranet
B. An organization’s global information system
C. The Internet
D. The New York City Public Library

D 13. Recent studies have shown that the Internet has more than ________ million users
29 from home PCs.
A. 100
B. 150
C. 200
D. 250

B 14. In the Internet, the name of the organization that is associated with the host computer is
30 known as:
A. the host.
B. the domain.
C. the decision support system.
D. the database.

A 15. Since Forbes magazine has an internet site whch is www.forbes.com, the forbes part of
30 this address is known as:
A. the domain.
B. the host.
C. the home page.
D. the Web site.
Chapter 1 The Role of Business Research. 19

C 16. Which of the following is an educational Web site?


30 A. USPS.gov
B. forbes.com
C. ucla.edu
D. ford.com

A 17. Which of the following is a government Web site?


30 A. census.gov
B. ford.com
C. ibm.com
D. webster.edu

B 18. A university’s mainframe computer can be a ________ for local users and a ______
31 that allows access to other computers on the Internet.
A. server; host
B. server; client
C. client; file server
D. none of the above

A 19. When a university has an Internet site which contains pages giving its mission, course
31 descriptions, and the list of faculty, this is known as:
A. a web site.
B. the intranet.
C. a home page.
D. a host computer.

D 20. Which of the following can be made available on an organization’s Intranet?


37 A. Video
B. Graphics
Chapter 1 The Role of Business Research. 20

C. Data
D. All of the above

Fill in the Blank


1. Facts and recorded measures of phenomena are known as ________.
21
data

2. A body of facts arranged in such a way that the relationships between pieces of data
21 can be defined is known as ________.

information

3. An organized collection of computer hardware and software that allows the


22 organization to capture, store, update, and analyze information about it business activities worldwide is
known as a(n) ________ ________ ________.

global information system

4. A computer-based system that allows decision-makers to solve problems through


22 direct interaction with the organization’s databases is known as a(n) ________ ________ ________.

decision support system

5. A collection of raw data that is arranged in such a way that it can be stored and
23 processed by a computer is known as a(n) ________.
Chapter 1 The Role of Business Research. 21

database

6. A multi-tiered, computer storage of current and historical data for an organization is


24 called a(n) ________.

data warehouse

7. When detailed data from an organization’s operations has been stored within a
24 computer, it is said to have been “________”.

warehoused

8. In an organization’s data warehouse, the various database files are commonly referred
24 to as “________”.

tables

9. When users of the Internet send electronic messages to one another, they are said to be
29 using “________”.

e-mail

10. The opening screen of an organization’s web site is called the ________ ________.
31
home page
Chapter 1 The Role of Business Research. 22
Chapter 1 The Role of Business Research. 23

NOTES:

Chapter 3
Theory Building

True-False Questions
F 1. As a first step in applying the scientific method, we must state a hypothesis.
47

F 2. As a first step in applying the scientific method, we should explain what we have
48 learned during our research.

T 3. A hypothesis is a proposition that is empirically testable.


43

T 4. In most scientific situations, there are alternative theories to explain certain classes of
47 phenomena.

F 5. Prediction and forecasting are the two purposes of theory.


41

F 6. Deductive reasoning is the logical process of establishing a general proposition on the


47 basis of observation of particular facts.

T 7. Inductive reasoning is the logical process of establishing a general proposition on the


47 basis of observation of particular facts.

F 8. Inductive reasoning is the logical process of deriving a conclusion from a known


Chapter 1 The Role of Business Research. 24

47 premise or something known to be true.

T 9. Propositions are statements concerned with relationships among concepts.


42

T 10. A hypothesis is a proposition that is concerned with the relationship among variables.
43

T 11. The scientific method refers to techniques or procedures that are used to analyze
43 empirical evidence in an attempt to confirm or disprove prior conceptions.

T 12. Deductive reasoning is the logical process of deriving a conclusion from a known
47 premise or something known to be true.

F 13. Things are the essence of theory, not ideas.


42

F 14. Propositions are statements concerned with concepts described in isolation.


42

T 15. In management theory, "leadership," "productivity," and "morale" are concepts that
41 abstract reality.

T 16. The purpose of science is to expand knowledge and to discover truth.


40

T 17. Prediction and understanding are the two purposes of theory.


41
Chapter 1 The Role of Business Research. 25

T 18. Theory development is essentially a process of describing and explaining phenomena


41 and relationships at increasingly higher levels of abstraction.

F 19. The process of empirical verification can be done separately from the process of theory
43 development.

T 20. A coherent set of general propositions is an essential aspect of the definition of theory.
43

F 21. Theory generation can occur at the conceptual level, but not at the empirical level.
47

T 22. At the conceptual level, theory can be developed using deductive reasoning.
47

Multiple Choice Questions

D 1. A(n) is a proposition that is empirically testable.


43 A. ladder of abstraction
B. variable
C. concept
D. hypothesis

B 2. The idea that a theory is “empirically testable” means that it be verified by:
43 A. a computer.
B. observation and experiments.
C. Zen.
D. none of the above.
Chapter 1 The Role of Business Research. 26

C 3. The text presents the following quote from the book Zen and the Art of Motorcycle
48 Maintenance: "In Part One of formal scientific method...the main skill is in stating absolutely no more
than you are positive you know." This describes which step in applying the scientific method?
A. Analysis and evaluation of data
B. Providing explanation and stating new problems raised by the research
C. Assessment of relevant existing knowledge
D. Designing the research to test the hypothesis

C 4. The two purposes of theory are:


41 A. empirical testing and description.
B. description and prediction.
C. prediction and understanding.
D. understanding and testing.

A 5. Which of the following is NOT true about theories?


41 A. The main purpose of theory is description.
B. Concepts abstract reality.
C. Theories are used as principles of explanation of apparent relationships of certain observed
phenomena.
D. Theories, once verified, allow for prediction.

B 6. Which of the following is NOT a step involved in the application of the scientific
48 method?
A. Statement of hypotheses
B. Purchase of computer software to analyze data
C. Assessment of relevant existing knowledge
D. Analysis and evaluation of data

B 7. A(n) is a coherent set of general propositions used as principles of explanation of


41 the apparent relationship of certain observed phenomena.
Chapter 1 The Role of Business Research. 27

A. concept
B. theory
C. abstraction ladder
D. hypothesis

D 8. Deductive reasoning is:


47 A. the logical process of establishing a general proposition on the basis of
observation of particular facts.
B. the logical process of inducing individuals to reason.
C. the logical process of linking propositions via the ladder of abstraction.
D. the logical process of deriving a conclusion from a known premise or something known to be
true.

C 9. Consider the following two statements: (a) reinforcements will increase habit strength
43 and (b) bonus pay will be associated with sales volume consistently above the quota. Statement (a) is
a(n) and statement (b) is a(n) .
A. concept, proposition
B. concept, hypothesis
C. proposition, hypothesis
D. hypothesis, proposition

B 10. Consider this statement: "All Business Research students who have ever been seen are
47 human beings. Therefore, we conclude that all Business Research students are human beings." This is
an example of:
A. a variable.
B. inductive reasoning.
C. the ladder of abstraction.
D. deductive reasoning.
Chapter 1 The Role of Business Research. 28

A 11. Inductive reasoning is:


47 A. the logical process of establishing a general proposition on the basis of
observation of particular facts.
B. the logical process of inducing individuals to reason.
C. the logical process of linking propositions via the ladder of abstraction.
D. the logical process of deriving a conclusion from a known premise or something known to be
true.

D 12. Consider this statement: "All Business Research students are human beings. Sally
47 Jones is a Business Research student, therefore we conclude that Sally is a human being." This is an
example of:
A. a variable.
B. inductive reasoning.
C. the ladder of abstraction.
D. deductive reasoning.

Fill in the Blank

1. In comparing two theories, researchers gather empirical data in an attempt to ______


43 the theories.

verify

2. The term ________ means that something is verifiable by observation, experience, or


43 experimentation.

empirical
Chapter 1 The Role of Business Research. 29

3. The logical process of deriving a conclusion from a known premise or something


47 known to be true is called .

deductive reasoning

4. The two purposes of theory are and .


41
prediction, understanding

5. The term refers to anything that may be measured.


43
variable

6. As it moves up the _____ _____ _____ , a basic concept becomes more abstract,
42 wider in scope, and less amenable to measurement. (Answer could be several words).

ladder of abstraction

7. The logical process of establishing a general proposition on the basis of observation of


47 particular facts is called .

inductive reasoning

8. Only when we explain how concepts are related to other concepts can we begin to
42 construct ________.

theories
Chapter 1 The Role of Business Research. 30

9. The term refers to statements concerned with the relationships among concepts.
42
propositions

10. A(n) is a generalized idea about a class of objects, attributes, occurrences, or


41 processes that has been given a name.

concept (construct)

11. A(n) is a proposition that is empirically testable.


43
hypothesis

12. A(n) is a coherent set of propositions used as principles of explanation of the


41 apparent relationships of certain observed phenomena.

theory

13. The refers to the level of knowledge reflecting that which is verifiable by
43 experience or observation.

empirical level

14. The is the use of a set of prescribed procedures for establishing and connecting
47 theoretical statements about events and for predicting events yet unknown.

scientific method

Chapter 4
The Research Process: An Overview
Chapter 1 The Role of Business Research. 31

True-False Questions

F 1. Since pilot studies involve informal data collection methods, they should not be used in
63 business research.

F 2. The most common method of generating secondary data is through surveys.


66

T 3. Inexperienced researchers often assume that a survey is the best research method,
69 because it is the technique with which they are most familiar.

F 4. The purpose of exploratory research is to provide conclusive evidence about a course


54 of action.

F 5. Descriptive research attempts to provide an explanation of the cause of the findings.


54

F 6. A written research report can be discarded after a study ends, because it has served its
73 purpose.

F 7. A diagnostic analysis provides evidence of a cause-and-effect relationship.


56

T 8. Generally when the researcher is totally unaware of the problem, he/she will conduct
62 exploratory research rather than descriptive or causal research.

T 9. The focus group interview is a type of pilot study.


63
Chapter 1 The Role of Business Research. 32

F 10. The most common way to generate primary data is through personal interviews.
66

F 11. Because many business research problems are unique, there is usually a single,
69 standard, correct method of carrying out a piece of research.

F 12. In data collection, a pretest means that a small sample of data is collected in order to
72 test the statistical data analysis procedures being used in the research.

T 13. If a consumer behavior theorist wishes to establish that attitude change causes behavior
56 change, one criterion that must be established is that attitude change precedes behavior change.

F 14. When discussing the stages in the research process, the term forward linkage would be
59 appropriate if we believe problem definition will be influenced by our knowledge that the data will be
analyzed by computers.

T 15. Researchers who seek to determine the answers to "who," "what," "when," "where,"
54 and "how" questions will be conducting descriptive research.

F 16. Because the main goal of causal research is to identify cause-and-effect relationships, it
56 usually precedes exploratory or descriptive studies.

T 17. The main goal of causal research is to identify cause-and-effect relationships between
56 variables.

F 18. Experiments have the least potential to establish cause-and-effect relationships.


66

F 19. The major purpose of descriptive research, as the name implies, is to clarify the nature
54 of problems.
Chapter 1 The Role of Business Research. 33

T 20. Business research needs clear objectives and definite research designs in order to be
65 conducted efficiently.

T 21. Exploratory studies are conducted to clarify the nature of problems.


54

F 22. The usual purpose of exploratory research is to provide conclusive evidence to


54 determine a particular course of action.

F 23. Exploratory research studies provide conclusive evidence to determine a particular


54 course of action.

F 24. "A problem well defined is a problem half solved," is an old adage not generally true in
60 the age of computers.

F 25. The most important stage of the research process is processing and analyzing the data.
60

F 26. Classifying business research on the basis of the technique used to collect the data
65 would yield the following classifications: exploratory research, descriptive research, and causal
research.

F 27. The preliminary activities undertaken to define the problem into a researchable one
60 should always be formal and precise so that mistakes will not be made.

T 28. Having discussions on research with the members of the company's sales force may be
62 a valuable source of information for exploratory research.
Chapter 1 The Role of Business Research. 34

F 29. Exploratory research is typically conducted near the later stages of the research
62 process.

F 30. Secondary data can seldom be gathered faster and at lower cost than primary data.
64

F 31. There is one standard design for exploratory research.


69

Multiple Choice Questions

B 1. A pilot study is:


64 A. an extremely rigorous research design involving formal methods for
collecting data.
B. a small-scale exploratory research technique that uses informal data collection methods.
C. a good example of backward linkage.
D. always the best way to approach business research situations.

B 2. All of the following statements are true EXCEPT:


69 A. there is no one best research design for all situations.
B. observation studies are easy to administer and conduct.
C. one drawback of observation methods is that they cannot record respondents' attitudes and
opinions.
D. there are many different ways to collect data.

B 3. The most difficult business decisions are those which are:


53 A. certain.
B. ambiguous.
Chapter 1 The Role of Business Research. 35

C. causal.
D. descriptive.

D 4. If a researcher is attempting to show the relationship between a sales training program


66 and the subsequent change in sales performance, this is an example of:
A. a focus group.
B. a telephone interview.
C. an observation study.
D. an experiment.

D 5. Which of the following factors would most likely decrease the importance of
53 managerial experience and judgment relative to the use of business research in a given situation?
A. Budget available for research
B. Need for a quick decision
C. Decision outcomes with high degrees of uncertainty
D. Routine repetitive decision problem

C 6. Which of the following statements about survey research is NOT true?


66 A. Gathers information from people by use of a questionnaire
B. Gathers primary data
C. Holds the greatest potential for establishing causal relationships
D. May be conducted using mail, personal interviews, or telephone

C 7. The four research design techniques for descriptive and causal research are:
65 A. focus groups, surveys, pilot studies, and experiments.
B. focus groups, surveys, experiments, and observation.
C. secondary data studies, surveys, experiments, and observation.
D. secondary data, focus groups, surveys, and experiments.

A 8. The textbook states that every decision-making situation can be classified on a


Chapter 1 The Role of Business Research. 36

53 continuum containing three categories. These categories are


A. uncertainty, certainty, ambiguity.
B. total confusion, partial confusion, complete clarity.
C. incomplete certainty, certainty, ambivalence.
D. difficult, moderately difficult, easy.

A 9. Relative to the decision-making process, at what point should business research enter
60 the process?
A. Problem discovery and definition
B. Alternative formulation
C. Evaluation of alternatives
D. Implementation

D 10. All of the following are stages in the research process, EXCEPT:
59 A. planning a sample.
B. defining the problem.
C. planning a research design.
D. conducting a telephone survey.

C 11. Which type of research study is attempting to answer the question: “Would members
62 of this target market be interested in purchasing this new type of product?”
A. Descriptive research
B. Causal research
C. Exploratory research
D. Definitive research

B 12. The main goal of causal research is:


56 A. to directly seek the solution to a particular, pragmatic problem.
Chapter 1 The Role of Business Research. 37

B. to identify cause-and-effect relationships between variables.


C. to clarify the nature of problems.
D. to provide a conclusive statement about the characteristics of a particular population or
phenomenon.

B 13. Which of the following is not a stage in the research process?


59 A. Collecting the data
B. Solving the managerial problem
C. Defining the research problem
D. Formulating conclusions

B 14. Any procedure that uses a small number of items or people to make a conclusion
70 regarding a larger group known as the population is called:
A. statistics.
B. sampling.
C. surveying.
D. probability theory.

A 15. Which of the following statements concerning research design is true?


65 A. Research design provides a framework that guides data collection and data
analysis.
B. Ideal research design is exactly determined by the research objectives.
C. Research design characteristics are indirectly determined by the information needs of the
decision maker.
D. All of the statements are true.

B 16. Checking the data collection forms for omissions, legibility, and consistency in
72 classification is referred to as:
A. auditing.
Chapter 1 The Role of Business Research. 38

B. editing.
C. accuracy analysis.
D. coding.

A 17. Which of the following questions will NOT be answered by the sampling plan?
70 A. Why is the sample being selected?
B. Who is to be sampled?
C. How big should the sample be?
D. How are the sampling units to be selected?

C 18. If the research problem were defined as: "Which of two prices produce the most
56 sales?”, the most appropriate type of research would be:
A. exploratory.
B. descriptive.
C. causal.
D. associative.

B 19. If we want to clarify the nature of problems, we would conduct research.


54 A. clarification
B. exploratory
C. descriptive
D. causal

C 20. Which type of research study is attempting to answer the question: “Which of two
56 sales training programs is more effective?”
A. Exloratory
B. Descriptive
C. Causal
D. Mall-intercept
Chapter 1 The Role of Business Research. 39

C 21. If the research problem were defined as: "Will buyers purchase more of the product in
54 a red or blue colored package?", the most appropriate type of research would be:
A. exploratory.
B. descriptive.
C. causal.
D. associative.

B 22. To be most useful, how should research objectives be stated?


65 A. They should be stated as broadly as possible to permit flexibility in applying
the research.
B. They should be stated as precisely as possible to avoid misapplying the research.
C. Usually it makes little difference whether they are broadly or precisely stated as long as the
objective is clear.
D. Most research does not need a stated objective because the nature of the problem implies the
objective.

C 23. A research design that merely records what occurs is a(n):


69 A. survey.
B. secondary data study.
C. observation study.
D. experiment.

C 24. What type of research study is being conducted when a researcher is attempting to
56 predict future sales on the basis of past sales trends?
A. Secondary data study
B. Exploratory
C. Causal
D. Descriptive

A 25. The appropriate research strategy to determine the demographic characteristics of


Chapter 1 The Role of Business Research. 40

55 owners of Ford Explorer SUVs would be:


A. descriptive design.
B. exploratory design.
C. simulation.
D. field experiment.

C 26. Research designs may be categorized according to their fundamental objective. Which
54 of the following are research design categories?
A. scientific, exploratory, descriptive
B. descriptive, research, experimental
C. descriptive, causal, exploratory
D. experimental, experience, exploratory
D 27. An exploratory research design would be LEAST likely to be used to:
55 A. create a more precise formulation of a problem.
B. clarify a basic concept.
C. increase familiarization with a problem.
D. describe the characteristics of a certain group.

D 28. Which of the following is designed to develop ideas and insights in decision-making
55 situations, especially when only limited knowledge is currently available?
A. Secondary research
B. Experimental research
C. Survey research
D. Exploratory research
Chapter 1 The Role of Business Research. 41

D 29. Which of the following is NOT a common exploratory research design?


62 A. pilot study
B. experience survey
C. secondary data study
D. observation study

D 30. Which of the following statements concerning research design is TRUE?


65 A. There is a single, correct plan for every problem.
B. There are two basic types of research design: surveys and experiments.
C. Research design is costly to plan and implement and is often unnecessary.
D. It is a plan for the collection and analysis of data.

C 31. Which of the following statements concerning secondary data is FALSE?


64 A. Secondary data sources should be considered before primary data are
collected.
B. Internal secondary data are usually preferred to external secondary data.
C. Data needed to complete a research project are usually attainable as secondary data.
D. Secondary data are available from commercial sources.

D 32. Which of the following is an advantage of secondary data as compared with primary
64 data?
A. Obtainable from reliable suppliers
B. Usually less expensive
C. Usually available in less time
D. All of the above are advantages.

C 33. The number of automobiles that drive over a “counter cable” in the road near a
Chapter 1 The Role of Business Research. 42

69 proposed site for a convenience store is an example of:


A. secondary data collection.
B. exploratory research.
C. an observation study.
D. an experiment.

Fill in the Blank

1. Every month the Bureau of Labor Statistics conducts a survey to obtain statistics on
55 unemployment and other labor issues. This is an example of research.

descriptive

2. After expanding a staff training program, a manager conducts a follow-up study to


56 compare the productivity of employees who have gone through the new program with those who went
through the old program. This is an example of research.

causal

3. The term implies that later stages of research will influence the design of earlier
59 stages.

backward linkage

4. A manager conducts a preliminary survey of employees to determine if they might be


55 interested in a company-sponsored child-care program. This is an example of research.

exploratory

5. The term implies that earlier stages of research will influence the design of later
Chapter 1 The Role of Business Research. 43

59 stages.

forward linkage
6. A(n) is a sample in which every member of the population has a known,
71 nonzero probability of selection.

probability sample

7. In data processing, the rules for interpreting and categorizing and recording data are
72 known as ________.

codes

8. Data gathered and assembled specifically for the project at hand are data.
63
primary

9. The most common method of generating primary data is through .


66
surveys

10. Recording by mechanical counter the number of automobiles that pass a proposed site
69 for a gasoline station is a(n) study.

observation

11. A sample is a(n) from a larger population.


70
subset
Chapter 1 The Role of Business Research. 44

12. Data previously collected and assembled for some project other than the one at hand
63 are data.

secondary

13. When a firm conducts research by discussing the general nature of a new product with
62 some of its key retailers and wholesalers, it is conducting a(n) ___ study.

exploratory

14. The is a group dynamics session with six to ten people, loosely structured, and
62 based on the assumption that individuals are more willing to share their ideas as they share in the ideas
of others.

focus group

15. Every business problem can be classified on a continuum containing three categories:
53 _____ ______ ______ .

certainty, uncertainty, ambiguity

16. The use of “mystery shoppers” is an example of a(n) ________ type of research study.
69
observation
Chapter 1 The Role of Business Research. 45

17. When management has discovered a general problem, but research is needed to gain a
54 better understanding of the dimensions of the problem, research is conducted.

exploratory

18. If we seek to determine the answers to "who," "what," "when," "where," and "how"
55 questions, we conduct research.

descriptive

19. The main goal of is to identify cause-and-effect relationships between


56 variables.

causal research

20. When managers are asked: “Why do you feel that way?”, this is a type of
56 organizational behavior study which is termed ________ ________.

diagnostic analysis

21. A(n) is a master plan specifying the methods and procedures for collecting and
65 analyzing the needed information.

research design

22. Data processing generally begins with and of the data.


72
editing, coding
Chapter 1 The Role of Business Research. 46

23. The application of logical reasoning to the understanding of data that have been
73 collected about a topic is called .

analysis

24. The design technique that holds the greatest potential for establishing cause-and-effect
66 relationships is .

experiments

25. The occurrence of two events that vary together is termed ________ variation.
57
concomitant
Chapter 5
Ethical Issues in Business Research

True-False Questions

T 1. Privacy concerns are an important issue in business research.


79

T 2. A societal norm is a code of behavior about what to do in a given situation.


78

F 3. "Push-polling" refers to the practice of providing free transportation to the polls during
86 an election to increase voter turnout.

T 4. Ethical issues may vary, depending on whether a research participant has given willing
79 and informed consent.
Chapter 1 The Role of Business Research. 47

F 5. A participant in an unobtrusive observation study has the same rights as the respondent
79 in a survey.

F 6. If a research survey includes information about the respondents’ name and address, it is
83 ethical for the researcher to supply this information to the sponsoring organization.

T 7. All individuals have the right to participate or to refuse to comply with the requests of
78 market researchers.

F 8. The right to privacy is absolute and cannot be waived by anyone under any
79 circumstances.

F 9. If an organization asks three business research organizations to submit a proposal for a


84 research project, it is ethical for the organization to incorporate ideas from the proposals which were
rejected in its research plan.

T 10. Honest cooperation is the main obligation of a respondent.


79

F 11. In most research situations, there are three parties involved: the researcher, the
78 researcher's employer, and the government.
F 12. As a general rule, if the researcher honestly believes a question to be reasonable, the
78 respondent is obligated to give a truthful answer.

T 13. The term "societal norms" refers to codes of behavior adopted by a group, suggesting
78 what a member of the group ought to do under given circumstances.

F 14. According to the Federal Trade Commission, under certain circumstances it is legal for
81 a researcher to misrepresent a sales tactic as business research.
Chapter 1 The Role of Business Research. 48

T 15. An ethical researcher would inform respondents of deceptions used in a research


80 project after the project was completed.

T 16. When a respondent in a research study understands the purpose of the research study
79 and waives his or her right to privacy, this is called informed consent.

T 17. An ethical researcher would never use deception in a research project if the possibility
80 of psychological harm existed.

F 18. A reasonable and effective sales tactic is to use the guise of business research to gain
81 access to subjects.

T 19. A number of ethical questions arise because of the conflict between the researcher's
79 desire to seek information and the subject's right to privacy.

Multiple Choice Questions

C 1. When a respondent in a personal interview refuses to answer a question about his


78 annual income, the respondent is exercising his right to:
A. informed consent.
B. seek information.
C. refuse to participate.
D. be truthful.

B 2. Which of the following statements is FALSE?


81 A. Business researchers have ethical obligations to both respondents and clients.
B. A business code of ethics describes ethical procedures to be followed by computer
programmers who write the software code for business research projects.
Chapter 1 The Role of Business Research. 49

C. Many people believe that subjects have a right to be completely informed about a given
research project.
D. Privacy concerns may conflict with business research.

A 3. Research undertaken to support a specific claim in a legal action is called:


88 A. advocacy research.
B. push-polling.
C. a violation of the Code of Ethics of the American Association for Public Opinion Research.
D. a pseudo-pilot study.

B 4. Which of the following statements is TRUE?


79 A. Researchers should never tell respondents the true sponsor of the research,
because this will only bias their responses.
B. Researchers have the responsibility to preserve the privacy of respondents.
C. Researchers have the responsibility to reveal respondents' identity to the research sponsor, if
in their opinion those respondents would be good potential customers.
D. Unobtrusive observation of public behavior in public places is illegal and a serious violation
of privacy.

D 5. Which of the following should be considered before a researcher decides to use


80 deception in a study?
A. The importance of the study
B. The availability of alternative methods
C. The seriousness of the deception
D. All of the above

A 6. The subject's right to privacy may be waived by:


79 A. informed consent.
B. guaranteed anonymity.
C. confidentiality procedures.
D. all of the above
Chapter 1 The Role of Business Research. 50

Fill in the Blank

1. The term refers to codes of behavior adopted by a group, suggesting what a


78 member of the group ought to do under given circumstances.

societal norms

2. When campaign pollsters call thousands of voters to spread negative information about
86 a candidate, this is called .

push polling

3. In research ethics situations, three parties may be involved: _____, _____, and _____.
78
researcher, client, respondent

4. Generally, deception is justified on two conditions: . (Answer could be several


80 words).

investigators assume no physical danger or psychological harm will be caused by the deception;
researchers take personal responsibility for informing the respondent of the deception after the research
is completed

5. Each party involved in a research situation expects and feels certain obligations
78 toward the other party.

certain rights

6. The main obligation of a respondent in a research study is .


Chapter 1 The Role of Business Research. 51

79
honest cooperation

7. If a researcher writes a research report which claims more accuracy to the data than is
83 warranted, this is an example of ________ of research.

misrepresentation

8. Researchers have an obligation to abide by the prepared by the American


81 Association for Public Opinion Research.

code of ethics

9. When a client says something like, "I don't want to promise anything, but you should
88 know that this is the first in a very ambitious series of studies we are planning to undertake, and if you
sharpen your pencil in estimating cost . . ." but does not really plan to do a second study, we might label
this a(n): _____ study.

pseudo-pilot

10. Business research conducted to support a specific claim in a legal action is known as
88 ________ research.

advocacy

Chapter 6
Problem Definition and the Research Proposal

True-False Questions
Chapter 1 The Role of Business Research. 52

T 1. Sometimes events that appear to be the problem are actually symptoms of a deeper
96 problem.

T 2. The quantitative aspect of the research process should not begin until the research
93 problem has been clearly defined.

T 3. As a general rule, a variable is anything that may assume different numerical or


97 categorical values.

F 4. As a general rule, it is better to isolate and identify the symptoms, rather than the
96 problem.

T 5. The important variables in the research study should be defined in the problem
97 definition stage of the research process.

T 6. Hypotheses are statements that can be empirically tested.


98

T 7. The research objectives should specify the information needed to make a decision.
99

T 8. The research proposal always includes a statement explaining the purpose of the study
102 or a definition of the problem.

T 9. Most decision-making situations fall somewhere between the two extremes of routine
93 problems and absolute ambiguity.

F 10. According to the text, the first step in the process of problem definition is to state the
94 hypotheses and research objectives.
Chapter 1 The Role of Business Research. 53

T 11. A categorical variable has a limited number of distinct values.


97
F 12. Any complete research proposal should include a schedule of how long it takes to
102 conduct each stage of the research, but a statement of costs is not necessary since these will vary
depending on what occurs during the field work stage.

T 13. One aspect of problem definition often lacking in research proposals is anticipating
94 outcomes of statistical analysis.

F 14. A categorical variable has an infinite number of values.


97

T 15. An independent variable is expected to influence the dependent variable.


98

F 16. The business problems and the research objectives are never the same.
99

T 17. "Don't say it, write it" is wise advise for the researcher preparing a research proposal.
104

T 18. Dummy tables are part of the research proposal that are representations of actual tables
106 that will be in the findings section of the final report.

F 19. Dummy tables are the most elementary form of analysis, illustrating findings so that
106 even the most unsophisticated manager can understand them.

T 20. The research proposal is a written statement of the research design.


102
Chapter 1 The Role of Business Research. 54

T 21. The new Coke problem discussed in the textbook was a good example of the iceberg
95 principle.

T 22. Budget constraints usually influence the amount of effort that will be used defining the
102 problem.

F 23. Research proposals all follow the same format.


104

F 24. A hypothesis is a proven proposition which asserts the probable answers to research
98 questions.

F 25. The preliminary activities undertaken to define the problem into a researchable one
96 should always be formal and precise so that mistakes will not be made.

T 26. A problem definition indicates a specific business decision area that will be clarified by
94 answering some research questions.

T 27. Researchers need a sense of direction for the research study before they select a
93 research design for the study.

T 28. When a researcher informally gathers background information for a research problem,
96 we say that this researcher is performing a situation analysis.

T 29. A situation analysis is the informal gathering of background information to familiarize


96 researchers or managers with the decision area.

Multiple Choice Questions


Chapter 1 The Role of Business Research. 55

D 1. All of the following could be examples of continuous variables EXCEPT:


97 A. Profit
B. Sales volume
C. Market share
D. Gender

B 2. A business researcher wants to study how married couples decide to buy a new car.
96 The unit of analysis in this study would be the:
A. car.
B. couple.
C. salesperson who persuades them to make the purchase.
D. automobile industry in the United States.

D 3. Representations of actual tables that appear in a research proposal and will also appear
106 in the findings section of a final research report are called:
A. hypotheses.
B. categorical variables.
C. pseudo-pilot studies.
D. dummy tables.

D 4. Turnover will be higher among employees who perceive themselves as underpaid, than
99 among employees who perceive themselves as paid fairly. This sentence is an example of:
A. a categorical relationship.
B. a research objective.
C. a research question.
D. a hypothesis.

D 5. Which of the following is a possible way to measure “advertising effectiveness?”


98 A. Brand awareness
Chapter 1 The Role of Business Research. 56

B. Intention-to-buy
C. Sales volume
D. All of the above

B 6. Which of the following statements about defining the problem is FALSE?


99 A. Situation analysis is the informal gathering of background information to
familiarize managers (researchers) with the decision area.
B. Research objectives should be stated as broadly as possible to permit flexibility in applying
the research.
C. Decision makers seldom formulate or clearly articulate their objectives in specific operational
terms.
D. The dangerous part of many business problems, like the submerged portions of an iceberg, is
neither visible nor understood by business managers.

A 7. A researcher who must determine if the level of investigation will focus on the
96 collection of data about organizations, work groups, or individuals is making a decision about:
A. the unit of analysis.
B. the independent variable.
C. the hypothesis.
D. the dependent variable.

D 8. Which of the following statements about research proposals is FALSE?


102 A. Research proposals typically are written statements.
B. Research proposals involve a statement explaining the purpose of the study.
C. Research proposals force the researcher to critically think through each stage of the research
process.
D. Research proposals are a general framework, and explicit statements about sample selection,
field work, measurement, and the like, are prepared later at the appropriate time.

A 9. Which of the following is NOT a step in the process of problem definition?


94 A. obtain permission from interested parties to research the problem
B. ascertain the decision maker's objectives
Chapter 1 The Role of Business Research. 57

C. understand the background of the problem


D. determine the unit of analysis

A 10. A survey question about gender, to be answered with either "M" or "F," represents
97 a(n):
A. categorical variable.
B. unknown variable.
C. dependent variable.
D. continuous variable.

D 11. A survey question about profit, which could be answered with an infinite range of
97 possible figures, represents a(n):
A. categorical variable.
B. unknown variable.
C. dependent variable.
D. continuous variable.

D 12. Hypotheses have considerable practical value in planning and designing the research
99 because:
A. they force researchers to be clear about what they expect to find through the study.
B. the formal statement raises crucial questions about required data.
C. expected relationships among variables are expressed.
D. all of the above.

D 13. A conjectural statement expressing the expected relationships between variables is


99 referred to as a(n):
Chapter 1 The Role of Business Research. 58

A. problem definition.
B. variable definition.
C. symptom.
D. hypothesis.

C 14. A categorical variable is defined as:


98 A. a variable that is expected to influence the independent variable.
B. a variable that is to be predicted or explained.
C. a variable that can be classified into distinct values.
D. a variable that can only be scored "Yes" or "No."

B 15. The is expected to influence the .


98 A. predictor variable; primary variable.
B. independent variable; dependent variable.
C. dependent variable; independent variable.
D. criterion; hypothesis.

B 16. A(n) indicates a specific business decision area that will be clarified by answering
94 some research questions.
A. variable
B. problem definition
C. empirical hypothesis
D. symptom

A 17. The goal of defining the problem is:


94 A. to state the research question clearly.
B. to have a single hypothesis.
C. to translate a research problem into a managerial problem.
Chapter 1 The Role of Business Research. 59

D. to initiate exploratory research.

C 18. Which of the following statements about defining the problem is true?
98 A. Decision makers typically provide researchers with clearly articulated
objectives.
B. A hypothesis is a proven proposition.
C. A research objective is the researcher's version of the business problem.
D. The "iceberg principle" indicates that the most important aspect of problem definition is to
identify the symptoms of the problem.

D 19. According to the textbook, the most important reason for NOT beginning the formal
93 quantitative research process is:
A. the budget is unspecified.
B. top management has not given approval.
C. the research department is overburdened with project requests.
D. the problem has not been clearly defined.

B 20. According to the textbook, a is defined as anything that changes (or may assume)
97 different numerical values.
A. response
B. variable
C. symbol
D. factor

Fill in the Blank

1. A(n) involves informal gathering of background information to familiarize


96 researchers or managers with the decision area.
Chapter 1 The Role of Business Research. 60

situation analysis

2. The variable is expected to influence the variable.


98
independent; dependent

3. If previously-gathered information is inadequate, or if managers have trouble


96 identifying a problem, a(n) analysis may be the logical first step.

situation

4. A(n) variable has an infinite number of values.


97
continuous

5. A(n) is a written statement of the research design.


102
research proposal

6. The process of problem definition has two goals: to state the research question clearly
99 and to create well-formulated _______ .

hypotheses

7. It is useful if the research objective is a ________ ________ ________..


101
managerial action standard

8. The research proposal always includes a(n) . (Answer could be several words).
102
Chapter 1 The Role of Business Research. 61

statement of the purpose of the study (or definition of the problem)

9. In the research proposal, are representations of the actual tables that will be in
106 the findings section of the final report.

dummy tables

10. When a decision-maker says to a researcher: “If we get X as the result, I will do Y, but
101 if we get Z as the result, I will do A instead,” this is an example of a managerial ________
standard.

action

11. A(n) variable has a limited number of distinct values.


97
categorical

12. Anticipating the statistical findings of a research study is part of anticipating the
95 ________ of the research study.

outcomes

13. A hypothesis is a statement that can be refuted or supported by .


99
empirical data

14. According to the textbook, the decision maker (seldom?/frequently?) formulates


95 his/her objectives accurately or clearly articulates the objectives to the researcher.
Chapter 1 The Role of Business Research. 62

seldom

15. The principle indicates that the dangerous part of many business problems is
95 neither visible to, nor understood by, business managers.

iceberg

16. A(n) is anything that may assume different numerical values.


96
variable

17. An employee's hourly pay rate can be influenced by years of work experience. In a
98 research proposal, the pay rate would be considered a(n) variable, while years of work experience
would be a(n) variable.

dependent; independent

Chapter 7
Exploratory Research and Qualitative Analysis

True-False Questions

F 1. The purpose of exploratory research is to provide conclusive answers to research


110 questions.

F 2. An effective focus group moderator has a list of questions already prepared that each
120 participant is required to answer.
Chapter 1 The Role of Business Research. 63

F 3. Exploratory research typically provides extensive, quantitative data.


111

F 4. Focus groups with a company's employees should always be conducted by their


110 supervisor.

F 5. In exploratory research, rigorous mathematical tests are typically performed.


111

T 6. Exploratory research cannot take the place of quantitative, conclusive research.


130

T 7. Conducting a case study typically requires the cooperation of the party whose history is
115 being studied.

F 8. Case studies provide conclusive results.


116

F 9. A thematic apperception test provides conclusive results.


128

F 10. In the thematic apperception test, a comment by one individual often triggers a chain of
128 responses from other subjects.

T 11. Concept testing is a form of research that tests some sort of stimulus as a proxy for a
112 new or revised program, product, or service.
F 12. Exploratory research refers to exhaustive research studies conducted after a business
110 problem has been successfully defined.
Chapter 1 The Role of Business Research. 64

T 13. The purpose of the case study method is to intensively investigate one or a few
115 situations similar to the researcher's problem situation.

T 14. Role playing is a technique that requires the subject to act out someone else's behavior
127 in a particular setting.

T 15. The projective technique does not require respondents to provide answers in any
124 structured format.

F 16. Most exploratory research entails a great deal of quantitative research.


111

F 17. When the results of exploratory research are extremely positive they can take the place
110 of a quantitative conclusive research study and save a lot of money.

T 18. It is important to remember that exploratory research techniques have limitations.


124

F 19. One of the principal advantages of focus group interviews is that, in the absence of an
124 effective moderator, a self-appointed participant will fill the role of moderator.

T 20. A third-person technique is an indirect means of questioning that enables the


127 respondent to "project" beliefs and feelings onto a third party, onto an inanimate object, or into a task
situation.

T 21. Del Monte did a concept test of shelf-stable yogurt.


112

F 22. The strongest advantage of case analyses is that situations are directly comparable, and
116 thus many insights can be gained.
Chapter 1 The Role of Business Research. 65

T 23. The results from case study analysis should be seen as tentative.
116

F 24. The purpose of the case study method is to obtain information from at least a dozen
115 similar case situations.

F 25. Exploratory research is another name for preliminary library research, where past
115 studies are evaluated.
F 26. The logic of projective techniques is to forecast sales results into a future period.
124

T 27. Interpreting word association tests is highly subjective.


126

F 28. Exploratory research frequently can be a good substitute for conclusive research.
130

T 29. An experience survey is classified as exploratory research.


114

T 30. A pilot study is an informal, exploratory investigation that is carried out to serve as a
117 guide for a larger study.

T 31. Investigating data that have been compiled for some purpose other than the project at
115 hand is one of the most frequently used forms of exploratory research.

F 32. The type of technique utilized determines whether a study is exploratory, descriptive,
114 or causal.
Chapter 1 The Role of Business Research. 66

T 33. In exploratory research, the term pilot studies refers to a collective group of diverse
117 techniques that will be conducted on a small scale.

T 34. The ideal size of a focus group is 6 to 10 people.


119

F 35. The ideal size for a focus group is 3 to 4 people.


119

F 36. A pilot study typically contains a precise, quantitative estimate from a large,
117 representative sample.

F 37. Conclusive research provides qualitative data.


110

T 38. Exploratory research may be a series of informal studies.


111

T 39. The purpose of a focus group interview is to encourage group members to discuss a
117 subject among themselves and to generate the respondents' true feelings, anxieties and frustrations, as
well as the depth of their convictions.
T 40. With focus group interviews, a main idea is that the combined effort of the group will
117 produce a wider range of information than will the accumulation of the responses of a number of
separate individuals.

T 41. The prime advantages of focus group interviews are that they are relatively fast, easy to
117 execute, and relatively inexpensive.

F 42. Focus group interviews typically can take the place of quantitative studies.
132
Chapter 1 The Role of Business Research. 67

Multiple Choice Questions

C 1. When Del Monte conducted a focus group discussion to study whether the target
112 market would accept the idea of a shelf-stable yogurt that did not require refrigeration, this was an
example of a(n):
A. a depth interview.
B. a projective technique.
C. a concept test.
D. a TAT experience survey.

D 2. There are several advantages to focus groups. Which of the following is NOT an
118 advantage?
A. synergism
B. snowballing
C. spontaneity
D. sentence completion

A 3. When a researcher goes to the library to do an extensive literature review to determine


115 some ideas for exploratory research, this is an example of:
A. secondary data analysis.
B. primary data analysis.
C. a projective technique.
D. TAT research.

C 4. Focus groups of employees:


109 A. should always be led by co-workers.
B. should include employees with their supervisors in the same group.
C. can be a valuable technique for improving a company's operations.
D. all of the above.
Chapter 1 The Role of Business Research. 68

B 5. When a marketing researcher asks the company’s accounting department to provide a


115 list of the company’s top ten customers in terms of sales dollars over the past three months, this is an
example of:
A. a projective technique.
B. secondary data analysis.
C. an in-depth interview.
D. the case study method.

C 6. Qualitative research:
111 A. is essentially the same as quantitative research.
B. generally employs rigorous mathematical analysis.
C. is subjective in nature.
D. is objective in nature.

C 7. A researcher uses a cartoon drawing to which the respondent suggests dialogue that the
128 cartoon characters might speak. This is an example of:
A. a focus group.
B. sentence completion.
C. thematic apperception testing.
D. word association.

C 8. Discussion, such as informal conversations, with knowledgeable people, both inside


114 and outside the company, are:
A. knowledge acquisitions.
B. mainstream conversations.
C. experience surveys.
D. pilot studies.
Chapter 1 The Role of Business Research. 69

C 9. In a(n) , knowledgeable people should be selected because they are articulate


114 individuals rather than because the researcher want to obtain a representative probability sample.
A. depth interview
B. word association test
C. experience survey
D. structural analysis

A 10. With respect to research design:


115 A. case studies may be used in both descriptive and exploratory research.
B. experimentation may be used in exploratory research.
C. case studies may be used in both descriptive research and experimentation.
D. descriptive research may be categorized as either conclusive research or experimentation.
D 11. Oscar Wilde said, "A man is least himself when he talks in his own person. Given a
124 mask he will tell the truth." This remark indicates the underlying logic of:
A. focus groups.
B. secondary techniques.
C. concept testing.
D. projective techniques.

A 12. In a focus group, the discussion guide is:


120 A. the moderator's written prefatory remarks and outline of topics to be
addressed.
B. an experienced researcher who guides the group's discussion.
C. a word association test administered to focus group participants.
D. a form of research that tests some sort of stimulus as a proxy for a new or revised program,
product, or service.

A 13. Which of the following is NOT a reason why exploratory research is conducted?
111 A. prospecting for clients
B. screening alternatives
Chapter 1 The Role of Business Research. 70

C. discovering new ideas


D. diagnosing a situation

D 14. Exploratory research can involve each of the following EXCEPT:


114 A. a survey of knowledgeable people.
B. secondary data.
C. case studies.
D. experimentation.

C 15. The case study method has several distinct advantages over other methods of
115 descriptive research. Which of the following is NOT one of those advantages?
A. Data are often more accurate because of more intimate association between researcher and
respondent.
B. It provides a description of a real situation.
C. It is an objective tool for observing and recording.
D. All of the above are advantages.
.
D 16. In which of the following situations would an exploratory study NOT be appropriate?
111 A. Analyzing selected causes or cases
B. Conversations with individuals who have relevant information
C. Defining relationships so that hypotheses may be formulated
D. Measuring a brand's share of the market

A 17. A consists of a series of pictures with some continuity so that respondents may
128 project themselves into the situation and tell a story.
A. thematic apperception test
B. creative story test
C. picture perception profile
D. third person appraisal test
Chapter 1 The Role of Business Research. 71

D 18. Which of the following is a projective technique?


124 A. depth interview
B. focus group
C. experience survey
D. none of the above

D 19. When McDonald’s tries out a new menu item in a single restaurant to determine
116 customer response to that item, this is an example of:
A. an experience survey.
B. a situational analysis.
C. a thematic apperception test.
D. a case study.

D 20. One of the major difficulties with projective techniques is:


124 A. securing respondent cooperation.
B. interviewer cheating.
C. lack of experienced respondents.
D. interpretation of responses.

D 21. When a researcher reads a list of job tasks to a manager ans asks the manager to
124 respond with the first work that comes to mind in an attempt to determine this manager’s true feelings
about these job tasks, this is an example of:
A. an experience survey.
B. a depth interview.
C. a case study.
D. a word association test.

D 22. The Calamarios example in the text illustrates the use of:
113 A. situation diagnosis.
Chapter 1 The Role of Business Research. 72

B. alternative screening.
C. word association tests.
D. concept testing.

B 23. When the researcher obtains information from one or a few situations similar to the
116 researcher's problem, the research technique is referred to as a(n):
A. focus group method.
B. case study method.
C. specific observation method.
D. specific experience method.

A 24. In evaluating the meaning evoked by potential brand names, the technique is often
126 used.
A. word association
B. thematic apperception
C. role playing
D. depth interview

D 25. Exploratory research:


111 A. answers questions of fact necessary to determine a course of action.
B. provides a precise quantitative measurement.
C. does not require careful and systematic planning.
D. provides qualitative measures that help clarify problems.

A 26. Three purposes for exploratory research are to:


111 A. diagnose a situation, screen alternatives, discover new ideas.
B. diagnose a situation, screen alternatives, provide quantification.
C. discover new ideas, diagnose a situation, provide quantification.
Chapter 1 The Role of Business Research. 73

D. discover new ideas, screen ideas, provide quantification.

C 27. A manager may choose from which of the following general categories of exploratory
114 research?
A. experience surveys, focus groups, thematic apperception tests.
B. experience surveys, secondary data studies, focus groups.
C. experience surveys, secondary data studies, pilot studies.
D. thematic apperception, focus groups, secondary studies.

A 28. An exploratory research technique in which individuals who are knowledgeable about
114 a particular research problem are questioned is a(n):
A. experience survey.
B. focus group.
C. projective technique.
D. pilot study.

B 29. The ideal focus group size is:


119 A. less than 5 people.
B. 6-10 people.
C. approximately 25 people.
D. more than 100 people.

D 30. A is an unstructured free-flowing interview with a group of 6 to 10 participants.


117 A. group dynamic session
B. serendipity session
C. funnel group
D. focus group
Chapter 1 The Role of Business Research. 74

B 31. Which of the following statements does NOT adequately describe focus groups?
117 A. A snowballing effect often occurs where one individual often triggers a chain
of responses from other participants.
B. The session begins when each individual in turn is asked to answer the 5 to 10 questions from
a standardized list.
C. The flexibility of the group is an advantage.
D. All of the above adequately describe focus groups.

D 32. When a respondent is asked to complete the following statement: “A supervisor should
126 not ________,” this is an example of:
A. a poor test structure.
B. the word association technique.
C. the third-person technique.
D. the sentence completion method.

B 33. A researcher brings a small number of individuals together in a focus group interview.
118 If, after a brief introductory period, the respondents want to express their ideas and expose their feelings
as the general level of excitement increases, this would be an example of
A. scrutiny.
B. stimulation.
C. serendipity.
D. such an event seldom occurs.

B 34. Which of the following is an advantage of a depth interview?


129 A. High degree of structure
B. Valuable insights into motivation
C. Need for a skilled interviewer
D. Inexpensive

C 35. In investigating situations where interpersonal relationships are the subject of the
127 research, the technique is particularly useful.
Chapter 1 The Role of Business Research. 75

A. word association
B. focus group interview
C. role playing
D. depth interview

A 36. The following statements about an experience survey are true EXCEPT:
114 A. An experience survey has the purpose of providing conclusive evidence.
B. An experience survey may include discussions with individuals who work inside the
company.
C. An experience survey may include discussions with individuals who work outside the
company.
D. An experience survey may occur during situational analysis.

D 37. When a worker is asked to perform a task as if she were the supervisor in that work
127 situation, this is an example of:
A. a focus group interview.
B. the case study method.
C. the TAT projective techniques.
D. role-playing.

B 38. Which of the following provides a greater understanding of a concept or crystallizes a


111 business problem, rather than providing quantification or precise measurement?
A. Causal research
B. Exploratory research
C. Descriptive research
D. Conclusive research

B 39. When a research holds a 90-minute discussion with a manager in order to determine
129 this manager’s ideas about the feasibility of a new product launch, this is an example of:
A. a case study.
B. a depth interview.
Chapter 1 The Role of Business Research. 76

C. secondary data analysis.


D. word association.

Fill in the Blank

1. The ________, rather than the ________, determines whether a study is exploratory,
114 descriptive, or causal.

purpose; technique

2. When a researcher studies trade association data to study his or her organization’s
115 relative profitability ratios, this is an example of ________ data analysis.

secondary

3. research is subjective in nature and leaves much of the measurement process to the
110 researcher's discretion.

Qualitative

4. are unstructured, extensive interviews that encourage a respondent to talk freely


129 and in depth about an undisguised topic.

Depth interviews
Chapter 1 The Role of Business Research. 77

5. A(n) is an unstructured, free-flowing, group dynamics session that allows


117 individuals the opportunity to respond to the topics of discussion.

focus group

6. Initial research conducted to clarify and define the nature of a problem is .


110
exploratory research

7. Oscar Wilde's remark "A man is least himself when he talks in his own person; when
124 he is given a mask he will tell the truth," best describes .

projective techniques

8. The primary advantage of the _____ _____ method is that a single organization can be
115 investigated in great detail.

case study

9. The initials "TAT" refer to .


128
thematic apperception tests

10. Investigating data that have been compiled for some purpose other than the project at
115 hand, such as accounting records, is an example of .

secondary data analysis

11. During a(n) , the subject is presented with a list of words, one at a time, and
Chapter 1 The Role of Business Research. 78

124 asked to respond with the first word that comes to mind.

word association test

12. In a focus group, the is the moderator's written prefatory remarks and outline of
120 topics to be addressed.

discussion guide

13. The term describes a form of research that tests some sort of stimulus as a
112 proxy for a new or revised program, product, or service.

concept testing

14. The purpose of the is to intensively investigate one or a few situations


115 similar to the researcher's problem situation.

case study method

15. The idea that the combined efforts of the focus group members can produce a greater
118 number of ideas than can individual interviews with the participants is known as ________.

synergism

16. An exploratory research technique that requires the subject to act out someone else's
127 behavior in a particular setting is called .

role playing
Chapter 1 The Role of Business Research. 79

17. The idea that a focus group interview can be videotaped and studied carefully at a later
119 time is known as __________.

scrutiny

18. The ideal size of a focus group is to people.


119
six, ten

19. Discussing the problem at hand with a knowledgeable individual, such as the vice-
114 president of sales for your company, is an example of a(n) .

experience survey

20. The leader of a focus group discussion is typically referred to as the ________ of the
120 group.

moderator
Chapter 1 The Role of Business Research. 80

NOTES:

Chapter 8
Secondary Data

True-False Questions

T 1. The state of California has no racial majority.


135

T 2. Many states now publish data on the Internet.


147

F 3. All Internet sites that publish useful secondary financial data require payment of a
151 subscription fee before the data can be accessed.

F 4. The Internet has had little impact on how business research is conducted.
151

T 5. Secondary data are typically historical data.


136

T 6. The Internet is becoming more and more useful, due to the ever-expanding volume of
151 information it contains.

T 7. Market potential is frequently estimated by secondary data.


139
Chapter 1 The Role of Business Research. 81

T 8. Secondary data can typically be obtained fairly quickly.


136

T 9. A disadvantage of secondary data is that they were not originally designed to meet the
136 current researcher’s needs.

T 10. Secondary data must be timely.


136

T 11. Secondary data can quickly become outdated.


137
T 12. Units of measurement in secondary data are a potential problem to the researcher.
137

T 13. If secondary data are not in the format that the researcher needs, data conversion may
137 be necessary.

T 14. A researcher typically has no control over the accuracy of secondary data.
137

T 15. A good way to check the accuracy of secondary data is through cross-checks from
138 multiple sources.

T 16. Secondary data research objectives can be fact finding or model building..
138

F 17. The simplest form of secondary data research is model building.


138
Chapter 1 The Role of Business Research. 82

F 18. The process of “fact finding” involves specifying relationships between variables based
138 on secondary data, sometimes using descriptive or predictive equations.

F 19. Unfortunately, computerized databases are not yet widely available to the general
146 public.

T 20. Information itself can be a valuable product for a company to market.


151

T 21. Fact finding is the simplest form of secondary data research.


138

F 22. In secondary research, model building is less complicated than fact-finding.


139

F 23. In secondary research, model building can involve descriptive equations but not
139 predictive equations.

F 24. In secondary research, model building must include complicated mathematical


139 processes.

T 25. Wading through large volumes of data to discover patterns about the organization’s
141 customers is an example of data mining.

T 26. Wading through point-of-sale transactions to determine the relationships between


142 product purchases and other retail shopping information is known as market basket analysis.

T 27. Secondary data are gathered and recorded by someone else prior to (and for purposes
136 other than) the current needs of researchers.
Chapter 1 The Role of Business Research. 83

T 28. In some instances, data cannot be obtained using primary data collection procedures.
136

T 29. Obtaining secondary data is almost always faster and less expensive than collecting
136 primary data.

T 30. Analyzing the sequence of purchases of a customer is known as sequence discovery.


142

T 31. Two major drawbacks of secondary data are determining the accuracy of the data and
138 finding data which fit the specifications of the project.

T 32. To ignore secondary data may prove to be a costly oversight.


136

T 33. The Internet is an example of external secondary data.


151

T 34. In secondary data, data that are both internal and proprietary must have originated in
143 the organization.

T 35. It is essential that the purpose for which secondary data are collected and published be
136 determined.

T 36. Data conversion is the process of changing the original form of secondary data so that
137 its format is useful within the context of the research.

T 37. An inherent disadvantage of secondary data is that they were not collected specifically
137 to meet the researcher's needs.
Chapter 1 The Role of Business Research. 84

T 38. Large users of secondary data may purchase government documents directly, while
151 smaller users may use an intermediate distributor.

T 39. If a researcher obtains data from the company's own library, he or she is using
136 secondary data.
T 40. It can reasonably be assumed that most of the data published by the federal government
146 can be counted on for accuracy and quality.

T 41. Sales invoices are an example of an organization’s internal and proprietary data.
143

T 42. Trade association data are a common example of external secondary data sources.
144

Multiple Choice Questions

D 1. Which of the following information would NOT be found in STAT-USA/Internet?


146 A. Economic Report of the President
B. Listings of foreign businesses interested in buying U.S. products
C. Marketing research reports on individual countries
D. Confidential accounting records of Chase Manhattan Bank

D 2. Which of the following questions should a researcher ask about secondary data?
136 A. Do the data apply to the population of interest?
B. Is the time period consistent with our needs?
C. Are the units of information what we want?
D. All of the above

D 3. Which of the following is a common problem with secondary research data?


Chapter 1 The Role of Business Research. 85

137 A. Outdated information


B. Different definition of terms
C. Different units of measurement
D. All of the above

C 4. If you wanted to locate financial data about the U.S. stock market, a good source to
150 check would be:
A. the Nielsen Retail Index Service.
B. UPC scanner data.
C. the Value Line Investment Survey.
D. CACI/Instant Demographics.

B 5. Which of the following is a good way to verify the accuracy of secondary data?
138 A. Intuition
B. Cross-checks from multiple sources
C. The Internet
D. None of the above
A 6. Which type of secondary data is needed to answer the question: “How many
138 consumers of ages 18-35 live in zip code 63119?
A. Fact-finding
B. Data mining
C. Model building
D. None of the above

A 7. Which type of secondary data is an organization using when it attempts to determine


138 its brand’s market share in supermarket purchases?
A. Fact finding
B. Model building
C. Regression analysis
D. None of the above
Chapter 1 The Role of Business Research. 86

C 8. An organization’s market share equals:


140 A. revenues divided by net income.
B. sales times profit.
C. company sales divided by industry sales.
D. industry sales divided by company sales.

C 9. If you wanted to examine income statements and balance sheets for one of your
153 company's biggest Japanese competitors, you would use a database.
A. geographic
B. video
C. financial
D. scanner

A 10. When a credit card company tracks information about its customers’ age, gender,
142 income, and past credit history to determine patterns that make an individual a good or a bad credit risk,
this is an example of:
A. customer discovery data mining.
B. sequence discovery data mining.
C. market basket analysis.
D. market potential.

D 11. When a retailer analyzes the sequence of customer purchases to attempt to detect
142 patterns that can influence store layout, this is an example of:
A. customer discovery data mining.
B. market basket analysis.
C. market potential analysis.
D. sequence discovery data mining.

D 12. Which of the following questions would NOT be asked when evaluating secondary
Chapter 1 The Role of Business Research. 87

136 data?
A. Do the data apply to the time period of interest?
B. Do the data apply to the population of interest?
C. Are the units of measurement comparable?
D. All of the above would be asked.

D 13. Which of the following is a characteristic of data from the Bureau of the Census?
146 A. A reputation for poor quality
B. Not detailed enough for market research
C. Unavailable to the public
D. None are characteristics

D 14. Which of the following is an example of internal and proprietary data?


143 A. Orders received
B. Back orders
C. Salespersons’ call reports
D. All of the above

D 15. Which of the following is a basic source of external secondary data?


144 A. Commercial sources
B. Government sources
C. Trade association sources
D. All of the above

C 16. The Journal of Business Research is an example of which type of external secondary
144 data source?
A. Commercial source
B. Trade association source
C. Books and periodicals
D. Government source
Chapter 1 The Role of Business Research. 88

D 17. The Journal of Marketing Research is an example of what type of external secondary
144 data source?
A. Government source
B. Commercial source
C. Trade association source
D. Books and periodicals

A 18. The simplest form of secondary data research is:


138 A. fact finding.
B. data conversion.
C. model building.
D. input management.

B 19. The Census of Population is an example of which type of external secondary data
146 source?
A. Trade association source
B. Government source
C. Books and periodicals
D. Commercial source

B 20. Which of the following is FALSE?


136 A. Secondary data were collected for a purpose other than the one at hand.
B. High quality secondary data can usually be found to fit the problem if you are willing to pay
for it.
C. Secondary data are found in both internal and external data sources.
D. Secondary data may be gathered quickly.
Chapter 1 The Role of Business Research. 89

D 21. Which of the following is NOT a common problem with secondary data?
137 A. Outdated information
B. Variation in definition of terms
C. Different units of measurement
D. Takes too long to collect

C 22. All of the following are examples of external sources of secondary data EXCEPT:
144 A. libraries.
B. governmental sources.
C. company records.
D. commercial sources.

D 23. Secondary data refers to data that:


136 A. were purchased from an organization hired to collect the data.
B. were collected by intermediaries in the channel of distribution.
C. were collected without direct contact with respondents.
D. were collected for a purpose other than the problem at hand.

A 24. Compared with primary data, two typical advantages of secondary data are that they
136 are:
A. gathered quickly and less expensively.
B. more objective and accurate.
C. more timely and objective.
D. more directly relevant and easier to collect.
Chapter 1 The Role of Business Research. 90

B 25. The Statistical Abstract of the United States is an example of which type of external
146 secondary data source?
A. Commercial source
B. Government source
C. Books and periodicals
D. Trade association source

D 26. The Wall Street Journal is an example of which type of external secondary data
148 source?
A. Books and periodicals
B. Commercial source
C. Trade association source
D. Media source

D 27. Generally, a company's own accounting records:


143 A. are not considered a useful source of data.
B. are an important source of external secondary data.
C. can be easily compared to those of foreign companies, since accounting procedures
worldwide are similar.
D. are considered internal and proprietary data.

Fill in the Blank

1. According to the textbook, the U.S. government publishes a comprehensive source of


154 world trade data in the .

National Trade Data Bank

2. When secondary data appear in a format which does not match the needs of the
Chapter 1 The Role of Business Research. 91

137 researcher, _______ ________ may be necessary.

data conversion

3. In secondary research, model building can include both _______ or _______


139 equations.

descriptive; predictive

4. Analyzing point-of-sale transactions to identify product purchases to determine their


142 relationship with other retail shopping information is called _____ _____ _____.

market basket analysis

5. When a credit card company analyzes its records to determine the demographic
141 characteristics of both good and bad credit risks, it is using _____ _____.

data mining

6. "Nowhere in science do we start from scratch." This sentence emphasizes the


136 importance of .

secondary data

7. The simplest form of secondary data research is .


138
fact finding

8. The process of involves specifying relationships between variables based on


Chapter 1 The Role of Business Research. 92

139 data, sometimes using descriptive or predictive equations.

model building

9. Secondary data may be found in sources and in sources.


143
internal and proprietary; external

10. The U.S. Census Bureau Web site at www.census.gov is an example of a(n) _______
146 source of external secondary data..

government

11. The St. Louis Federal Reserve Bank Web site is an example of a(n) _____ source of
147 external secondary data.

government
12. When R.L. Polk Company sells data to automobile manufacturers about new-car
148 purchases, this is an example of a(n) _____ external secondary data source.

commercial

13. The U.S. Census of Population is an example of secondary data from a(n) source.
146
government

14. Secondary data that are created, recorded, or generated by an organization for its own
143 use are known as . (Answer could be several words).

internal and proprietary data


Chapter 1 The Role of Business Research. 93

15. When a researcher transforms a manager’s monthly salary into his annual salary, she is
137 performing a ______ ______.

data conversion

16. The Nielsen ScanTrack service is an example of a(n) _____ external secondary data
148 source.

commercial

17. Supermarkets track market share data by using ___ optical scanning codes.
148
UPC

18. Supermarkets track brand purchase movement by using _____ data.


148
scanner

19. If data have already been collected for another purpose, we refer to them as data.
136
secondary

20. The marketer of farm implements that utilizes the Census of Agriculture to obtain data
136 to forecast sales is utilizing data.

secondary

21. When Information Resources,Inc. sells weekly product item movement at drugstores,
Chapter 1 The Role of Business Research. 94

148 this is an example of a(n) _____ external secondary data source.

commercial

22. The prime advantage of secondary data is that they are usually ____ and to
136 obtain than primary data.

less expensive; quicker

23. Intermediary distributors of secondary data are called _____.


151
vendors

24. The primary advantage of secondary data over primary data is that secondary data are
136 typically _____ expensive than primary data.

less

Chapter 9
Chapter 1 The Role of Business Research. 95

Survey Research: An Overview

True-False Questions

F 1. The purpose of survey research is to collect secondary data.


175

T 2. An interviewer's appearance and behavior can influence respondents' answers.


183

F 3. Respondents may imply that they have more education than they actually do; this is an
182 example of acquiescence bias.

T 4. People who are not contacted are called nonrespondents.


178

T 5. People who refuse to participate are called nonrespondents.


178

T 6. Quality assurance means more than just meeting minimum standards.


189

T 7. Self-selection bias allows extreme positions to be overrepresented typically while those


178 who are indifferent are typically underrepresented.

T 8. If the National Rifle Association conducts a survey on gun control using its own
183 letterhead, it is likely that auspices bias will occur.

T 9. The people who answer survey questions are called respondents.


175
Chapter 1 The Role of Business Research. 96

T 10. Most surveys ask both structured and unstructured questions.


186

T 11. Total quality management is a business philosophy for integrating customer-driven


188 quality throughout an organization.

F 12. Many studies have shown that there is little difference between the level of service that
192 customers expect and the way front-line personnel deliver the service.

F 13. Most survey research is causal research.


175

F 14. The purpose of survey research is to collect secondary data.


175

F 15. It is impossible to apply total quality management principles to services, since it is


192 much more difficult to measure the quality of a service than of a tangible product.

F 16. In a longitudinal study, various segments of the population are sampled at a single
187 point in time so that relationships among variables may be investigated by cross-tabulation.

F 17. The purpose of a cross-sectional study is to examine the continuity of response and to
186 observe changes that occur over time.

T 18. One form of the longitudinal study is the panel study.


187

T 19. A structured question limits the number of responses available to a particular question.
186
Chapter 1 The Role of Business Research. 97

T 20. A mistake in the execution of a research design can result in administrative error.
184

T 21. Surveys provide a quick, inexpensive, efficient, and accurate means of accessing
175 information about the population.

T 22. The two major sources or categories of survey error are random sampling error and
175 systematic error.

T 23. Nonsampling error is another name for systematic error.


177

T 24. One way to study the possible self-selection bias in respondents is to compare the
178 demographics of the target group with the demographics of the sample respondents.

T 25. The statistical difference between a survey that includes only those who responded and
178 a survey that would also include those who failed to respond would be referred to as nonresponse error.
T 26. The situation in which a survey is administered can cause bias.
180

T 27. The term "survey" can be defined as a method of data collection based on
175 communication with a representative sample of individuals.

T 28. When respondents misunderstand a question in a survey, they may unconsciously give
181 a biased answer to the question.

T 29. In research on new products, acquiescence bias is a common problem.


Chapter 1 The Role of Business Research. 98

182

T 30. A person who is unwilling to answer a survey is called a refusal.


178

F 31. Improper administration of a research design can cause social desirability error.
184

F 32. Systematic error can only occur from some imperfect aspect of research design.
185

T 33. In longitudinal surveys, respondents are questioned at different points in time.


187

T 34. When an interviewer cannot write fast enough to record an answer verbatim, this is
185 called interviewer error.

T 35. Surveys are based on the assumption that the information the marketer requires may be
175 obtained simply by asking people.

T 36. The term sample survey emphasizes that the purpose of contacting respondents in an
175 interview or with a questionnaire is to obtain a representative sample of the target population.

F 37. When the results to a survey are biased by yea-sayers who are very agreeable to the
182 interviewer asking questions about a new brand, the survey has auspices bias.

T 38. The systematic overreporting of the consumption or purchase of a product with a


183 positive connotation, such as milk, is an example of social desirability bias.
T 39. The typical means of analyzing the data from a cross-sectional study is to divide the
186 sample into subgroups.
Chapter 1 The Role of Business Research. 99

T 40. Disguised questions may be used to probe sensitive subjects.


186

F 41. Nonresponse errors can only occur in mail surveys because of the methods used to
178 collect the data.

F 42. The statistical difference between a survey that includes only those who responded and
178 a survey that also includes those who failed to respond is referred to as unintentional error.

T 43. An example of self-selection bias might be the increased likelihood of response by a


178 man who has had his flight reservation bumped and then finds a self-administered questionnaire left at
the airline reservation counter.

T 44. The collection of data from the same households over time is called a panel study.
187

F 45. Self-selection biases a survey because it allows extreme positions to be


178 underrepresented, while those who are indifferent are overrepresented.

T 46. The error caused by an interviewer who fakes the answers to a questionnaire would be
185 administrative error.

T 47. When an interviewer's presence influences a respondent to say he does not have a
183 particular appliance in his home (when he actually does), a social desirability bias has occurred.

Multiple Choice Questions

B 1. When investigating Americans' eating habits, researchers often find that people
Chapter 1 The Role of Business Research. 100

183 exaggerate their consumption of vegetables and fruit, while minimizing their consumption of fast food.
This is an example of:
A. nonresponse error.
B. social desirability bias.
C. self-selection bias.
D. acquiescence bias.

A 2. If a respondent wants to make a good impression on the interviewer, this could lead to:
183 A. social desirability bias.
B. semantic confusion.
C. sample selection error.
D. nonresponse error.

A 3. Most survey research represents which type of research?


175 A. Descriptive research
B. Predictive research
C. Causal research
D. Experimental research.

A 4. The total quality management process begins with a(n) stage.


190 A. commitment and exploration
B. benchmarking
C. customer satisfaction analysis
D. initial quality improvement

D 5. Surveys have the advantage that they are:


175 A. quick.
B. relatively inexpensive.
C. accurate.
Chapter 1 The Role of Business Research. 101

D. all of the above.

D 6. All of the following are examples of response bias EXCEPT:


182 A. extremity bias.
B. auspices bias.
C. social desirability bias.
D. sample selection error.

C 7. A business owner, contacted at her home office, declines to participate in a telephone


178 survey because she doesn't have time. This is an example of:
A. self-selection bias.
B. a not-at-home.
C. a refusal.
D. extremity bias.

A 8. Which of the following is NOT an example of data processing error?


184 A. choosing an unrepresentative sample
B. typographical errors during data entry
C. accidentally combining answers from two respondents during data entry
D. inaccurate computer software
B 9. A is a study in which various segments of a population are sampled and data is
186 collected at a single moment in time.
A. panel study
B. cross-sectional study
C. longitudinal study
D. tracking study

A 10. Which of the following is NOT a characteristic of panel studies?


187 A. Members are selected at random.
B. Panels are expensive.
Chapter 1 The Role of Business Research. 102

C. Phone interviews are often used.


D. Diaries are used to aid members' recall.

B 11. All of the following are examples of administrative error EXCEPT:


184 A. data processing error.
B. auspices bias.
C. sample selection error.
D. interviewer cheating.

D 12. Which of the following is an example of response bias?


182 A. Extremity bias
B. Auspices bias
C. Social desirability bias
D. All of the above

D 13. Research on new product development typically includes which type of response bias?
182 A. Interviewer bias
B. Auspices bias
C. Extremity bias
D. Acquiescence bias

C 14. If the use of male interviewers in a study involving personal interviews with female
183 respondents yields less candid responses that would be the case if female interviewers were used, this is
an example of:
A. social desirability bias.
B. extremity bias.
C. interviewer bias.
D. acquiescence bias.
Chapter 1 The Role of Business Research. 103

C 15. When a respondent is asked to indicate his annual income in one of five categories, this
186 is an example of:
A. an unstructured question.
B. a disguised question.
C. a structured question.
D. an unstructured-disguised question.

D 16. Which of the following characteristics of an interviewer can create interviewer bias in
183 personal interviews?
A. Dress
B. Gender
C. Age
D. All of the above

D 17. A method of primary data collection based on communication with a representative


175 sample of individuals is called
A. conclusive research.
B. scientific observation.
C. an experiment.
D. a survey.

D 18. Which of the following statements does NOT adequately describe surveys?
175 A. Surveys provide a quick, efficient, and accurate means of inferring
information about the population.
B. When surveys are poorly designed, the survey may be worse than none at all because the
sponsor may be misled.
C. Surveys require communication with a respondent.
D. Surveys lack versatility and flexibility with respect to the type of issues, problems, and
concepts that may be investigated.
Chapter 1 The Role of Business Research. 104

B 19. Which of the following statements about surveys is FALSE?


175 A. The person who answers an interviewer's question is called a respondent.
B. Surveys can obtain information about attitudes, but not demographic information.
C. A survey is a method of primary data collection.
D. Surveys may be conducted to quantify certain factual information.

C 20. When total error is broken down into two major sources of survey error, they are:
176 A. random sampling error and sample selection error.
B. random sampling error and administrative error.
C. random sampling error and systematic error (bias).
D. sample selection error and response bias.

B 21. If respondents inflate their annul income figures during a personal interviewer in an
183 attempt to please the interviewer, this is an example of:
A. sample selection error.
B. social desirability bias.
C. unintentional error.
D. self-selection error.

D 22. Which of the following statements about surveys is FALSE?


176 A. Most surveys try to represent a cross-section of a particular target population.
B. Surveys require asking people questions. These people are called respondents.
C. Most survey research is descriptive research.
D. With a technically proper probability sample, random sampling error is eliminated.
Chapter 1 The Role of Business Research. 105

A 23. Most survey research is in nature.


175 A. descriptive
B. causal
C. exploratory
D. cross-sectional

B 24. If mall-intercept studies conducted during the morning hours underrepresent working
184 women in the sample, this is an example of:
A. interviewer bias.
B. sample selection error.
C. auspices bias.
D. social desirability bias.

C 25. If an interviewer is unable to write fast enough to record answers verbatim during a
185 personal interview, this is an example of:
A. auspices bias.
B. social desirability bias.
C. interviewer error.
D. random sampling error.

C 26. An example of might be the increased likelihood of response by a man who has had
178 his flight reservation bumped and then finds a self-administered questionnaire left at the airline
reservation counter.
A. authority error
B. auspices bias
C. self-selection bias
D. self-administered error
Chapter 1 The Role of Business Research. 106

A 27. When an interviewer intentionally skips over questions that deal with sensitive topics
185 during a personal interview, this is an example of:
A. interviewer cheating.
B. auspices bias.
C. social desirability bias.
D. random sampling error.

B 28. A results from some imperfect aspect of the research design that causes respondent
177 error or from a mistake in the execution of the research.
A. design fault
B. systematic error
C. random sampling error
D. none of the above

A 29. If a response to a survey question asks the respondent to say whether he or she is
186 “under 35 or over 35”, this is an example of a(n):
A. structured question.
B. disguised question.
C. cross-sectional question..
D. longitudinal question.

D 30. The error caused by an interviewer who fakes the answers to a questionnaire would be:
185 A. nonresponse error.
B. systemic error.
C. interviewer bias.
D. interviewer cheating.

B 31. At which stage of the total quality management process should the organization
Chapter 1 The Role of Business Research. 107

190 determine an initial measure of the frequency of customer problems?


A. Commitment and exploration stage
B. Benchmarking stage
C. Initial quality improvement stage
D. Continuous quality improvement stage
Fill in the Blank

1. A(n) error is an error caused by the improper administration or execution of a


184 research task.

administrative

2. If respondents' answers are influenced by the organization conducting the study, this
183 could lead to .

auspices bias

3. If respondents' answers are affected by their desire to appear wealthier than they
183 actually are, this reflects .

social desirability bias

4. If the interviewer somehow influences the responses of people being interviewed, this
183 is called .

interviewer bias

5. The total quality management process begins with a(n) stage, during which
190 management commits to total quality assurance and researchers explore customers' needs and beliefs.
(Answer could be several words).
Chapter 1 The Role of Business Research. 108

commitment and exploration

6. During the stage of TQM, researchers establish quantitative measures of quality


190 that can serve as points of comparison to evaluate future efforts.

benchmarking

7. The stage of TQM consists of many consecutive waves with the same purpose--to
190 improve over the previous period. (Answer could be several words).

continuous quality improvement

8. During the stage of TQM, the firm begins to establish quality improvement
190 processes within the organization. (Answer could be several words).

initial quality improvement


9. Surveys require asking people, who are called , for information using either verbal
175 or written questioning.

respondents

10. The two major sources of survey error (at the most general level) are error and
176 error.

random sampling, systematic

11. If some aspect of the research design is imperfect, or a mistake is made in the
177 execution of the research, can result.
Chapter 1 The Role of Business Research. 109

systematic error

12. The statistical difference between a survey that includes only those that responded and
178 a survey that also includes those who failed to respond is called .

nonresponse error

13. We can break down response bias into two categories: and unconscious
178 misrepresentation.

deliberate falsification

14. If respondents tend to agree with all questions, this could lead to .
183
acquiescence bias

15. When individuals tend to use extremes when responding to questions, we would say
183 that their answers are characterized by .

extremity bias

16. A(n) exists when the results of a sample show a persistent tendency to deviate
177 in one direction from the true value of the population parameter.

sample bias

17. Self-selection biases the survey because extreme positions may be represented,
Chapter 1 The Role of Business Research. 110

178 while those who are indifferent may be represented.

over, under

18. A survey that samples respondents during daytime hours in shopping centers,
184 excluding working people who mainly shop by mail or by telephone, is an example of error.

sample selection

19. In designing a questionnaire, limit the number of responses available.


186
structured questions
20. In surveys, respondents are questioned at different points in time.
187
longitudinal

21. When researchers want to investigate different market segments in the same survey,
186 they may choose a(n) study in which all the data are collected at a single point in time.

cross-sectional

22. A woman who had soup spilled on her at a restaurant is likely to fill out a questionnaire
178 left at the table. This might result in an error of .

self-selection

23. A study that asks the same group of people to keep track of all their purchases for a
187 period of time is called a(n) .

panel study
Chapter 1 The Role of Business Research. 111

24. A business philosophy for integrating customer-driven quality throughout an


188 organization is called .

total quality management

25. A type of bias which occurs frequently in self-administered questionnaires is called


178 _____ bias.

self-selection

26. The dimension of quality for goods and services which attempts to answer the
193 question: “Will this washing machine work properly each time it is used?” is referring to ________.

reliability
Chapter 1 The Role of Business Research. 112

Chapter 10
Survey Research: Basic Methods of Communication with Respondents

True-False Questions

T 1. The way a question is phrased can influence a respondent's answer.


228

T 2. Survey data are collected when individuals respond to questions asked by an


198 interviewer.

F 3. Self-administered mail questionnaires are a type of interactive survey.


224

F 4. Interviewers should paraphrase questions that they feel the respondent will
203 misunderstand.

F 5. A personal interview is especially useful for obtaining structured information.


201

F 6. Compared to a mail survey, the presence of an interviewer in a personal interview


201 generally decreases the percentage of people willing to complete the survey.

T 7. Survey response rates often increase when accompanied by an offer to contribute


Chapter 1 The Role of Business Research. 113

217 money to the respondent's choice of charity.

T 8. Sending surveys by E-mail can speed up turnaround time and reduce distribution costs.
219

F 9. Personal interviews are being conducted in shopping malls at a decreasing rate over the
203 past decade.

F 10. The code of ethics of the American Association for Public Opinion Research does not
230 deal with issues related to survey research.

T 11. Respondents are more likely to provide confidential or embarrassing information in a


206 mail survey than in a personal interview.
F 12. When 60 percent of the individuals sampled returned a questionnaire, it is said that the
209 survey has a 40 percent response rate.

F 13. Door-to-door interviews typically provide a less representative sample of the


202 population than mail surveys.

T 14. To reduce the chance that respondents will misunderstand a particular question, skip a
228 series of questions, or misinterpret the instructions for filling out a questionnaire, pretests are often
utilized.

F 15. In mall intercept interviews, the researcher typically is attempting to interview a


203 representative sample of the total population.

T 16. The presence of an interviewer generally increases the percentage of people willing to
201 complete an interview, since respondents are generally not required to do any reading or writing.

T 17. Control (e.g., supervision) over interviewers is important to assure that the difficult,
Chapter 1 The Role of Business Research. 114

203 embarrassing, and time-consuming questions are handled in the proper manner.

T 18. The respondent's motivation for returning a questionnaire may be increased by offering
217 monetary incentives.

T 19. In a typical survey, the response rate is relatively high for the first two weeks after the
217 questionnaires begin to be returned, then it gradually trails off.

T 20. Adding an "interesting" question at the beginning of a questionnaire can improve


217 response rates to a mail survey.

T 21. The letter that accompanies the questionnaire or is printed on the first page of a
215 questionnaire booklet is called the cover letter.

T 22. In the letter that accompanies a questionnaire, the first paragraph often explains why
215 the study is important.

T 23. A disadvantage of personal interviews is that they may exclude individuals living in
202 multiple dwelling units with security systems, such as high-rise apartments.

T 24. Relative to mail and telephone surveys, personal interviews have a high participation
201 rate.

F 25. Mall intercept interviews are likely to have less bias than household probability
203 sampling techniques.

T 26. A study comparing telephone interviews with personal interviews concluded that
209 respondents are willing to provide detailed and reliable information on a variety of personal topics over
the telephone.
Chapter 1 The Role of Business Research. 115

T 27. Advances in computer technology allow telephone interviews to be entered directly


207 into a computer.

F 28. Generally, the problem of unlisted telephone numbers cannot be resolved with
210 random-digit dialing, since connection to unlisted telephones requires the researcher to know the number
in advance.

F 29. The structure of personal interviews generally does not allow the interviewer the
201 opportunity to probe for clearer responses if the respondent's answer is vague or unclear.

F 30. Ease of callbacks is a primary advantage of personal interviews.


206

F 31. The term "not-at-home" is slang for random sampling error in a personal interview.
206

T 32. Mail questionnaires can reach a geographically dispersed sample simultaneously at a


212 relatively low cost.

F 33. The proportion of unlisted telephone numbers is rarely more than 10 percent, and this
210 low percentage does not cause any serious problem for survey researchers.

F 34. The callback is used exclusively in telephone interviews.


206

T 35. One disadvantage of the telephone interview is that the length of interviews is limited.
211

T 36. One major advantage of computer assisted surveys is the ability of the computer to ask
Chapter 1 The Role of Business Research. 116

224 questions depending upon the previous responses to earlier questions.

F 37. The computer assisted telephone interview from a central geographical location is the
227 best form of survey.

T 38. Centralized interviewing reduces interviewer error by utilizing fewer interviewers


207 working in a controlled environment.

T 39. One disadvantage of mail surveys is that the researcher has no assurance that the
215 intended subjects have actually filled out the questionnaire.

T 40. According to the textbook, a general rule of thumb on mail surveys is that they should
214 not be more than six pages long.

F 41. Door-to-door interviewing is the most popular form of survey research.


207

T 42. The typical study using door-to-door personal interviews will be more representative of
202 an urban community than a study using mall intercept interviews.

F 43. Personal interviews are typically less expensive than telephone interviews.
203

F 44. Researchers conducting personal interviews in shopping malls expect representative


203 samples of the population.

T 45. The letter that accompanies the questionnaire should explain that the respondents'
215 answers will be confidential.

T 46. On a mail questionnaire, the procedure of allowing respondents to check information


Chapter 1 The Role of Business Research. 117

213 by verifying records or consulting with family members should provide more valid, factual information
than either personal or telephone interviews allow.

F 47. Typically, respondents are less willing to provide detailed information on personal
208 topics over the phone than they are in personal interviews.

T 48. Personal interviews are more versatile and flexible than mail questionnaires.
201

F 49. The strengths and weaknesses of phone interviews are the same as those of personal
203 interviews.

T 50. Telephone interviewing is increasingly becoming the most popular form of survey
207 research.

T 51. A primary advantage of telephone surveys is the speed of data collection.


208

F 52. The proportion of unlisted phone numbers in major cities throughout the United States
210 is about the same.

T 53. A personal interview involves the gathering of information through face-to-face


199 contact with individuals.

F 54. The telephone provides an efficient means of conducting personal interviews.


207
T 55. According to the text, Chrysler researchers use a computerized device called a Gridpad
197 to expedite survey research.

F 56. A callback refers to a respondent's attempt to call an interviewer back to clarify


Chapter 1 The Role of Business Research. 118

206 answers.

F 57. There is less tendency for incomplete answers to occur in phone interviews than in
201 personal interviews.

F 58. An Internet survey is the same thing as an e-mail survey.


221

T 59. The Internet is an excellent medium for the presentation of visual materials.
221

T 60. One major advantage of Internet surveys is the computer’s ability to sequence
224 questions based on previous responses to questions.

F 61. Computer-interactive Internet surveys are programmed very differently from


224 computer-assisted telephone interviewing surveys.

T 62. A major disadvantage of Internet surveys is that many individuals in the general
222 population cannot access the Internet.

T 63. Internet surveys have real-time data capture, which allows for real-time data analysis.
224

Multiple Choice Questions

C 1. Which of the following is NOT a benefit of using E-mail to conduct surveys?


219 A. Distribution tends to be cheaper.
B. Turnaround time is often faster.
C. It enables researchers to reach a larger segment of the American population than almost any
other distribution method.
Chapter 1 The Role of Business Research. 119

D. Software is available that allows questions to branch off into a different line of questioning,
depending on respondents' answers.

A 2. When an interviewer asks a respondent: “What do you mean by that?, this is an


201 example of a(n):
A. probing question.
B. pretest.
C. CATI.
D. item nonresponse.

A 3. Older interviewers who interview _____ respondents typically produce _____ variance
203 in the responses of respondents than _____ interviewers who interview _____ respondents.
A. older; more; younger; younger
B. older; less; younger; younger
C. younger; more; younger; younger
D. none of the above

C 4. "Can you tell me more about what you mean by that?" is an example of:
201 A. mall interception.
B. a self-administered questionnaire.
C. probing.
D. random digit dialing.

B 5. If we count the number of questionnaires returned in a survey, and divide this total by
215 the number of eligible people who were asked to participate, we have calculated the:
A. CATI.
B. response rate.
C. sponsorship rate.
D. cohort coefficient.
Chapter 1 The Role of Business Research. 120

D 6. A personal interview conducted in a shopping mall is called a(n):


203 A. callback survey.
B. shopper satisfaction survey.
C. probing strategy.
D. mall intercept interview.

B 7. A good rule of thumb is to plan telephone interviews so that they are no more than
211 long.
A. 50 seconds or less
B. 10 minutes
C. 1 hour
D. 2 hours

C 8. When interviewers ask for clarification or expansion of answers to standardized


201 questions, we call this:
A. qualifying.
B. standardizing.
C. probing.
D. conversing.

B 9. Which of the following is NOT an advantage of the personal interview?


201 A. High participation rate
B. Anonymity of respondents
C. Good opportunity to probe
D. Ability to use visual aids
Chapter 1 The Role of Business Research. 121

D 10. Which of the following is NOT a disadvantage of the personal interview?


206 A. High cost
B. Potential for interviewer bias
C. Interviewer cheating is possible
D. Low cost per interview

D 11. Surveys sampling people visiting shopping malls generally are:


203 A. adjusted to eliminate response bias.
B. rarely conducted.
C. referred to as longitudinal studies.
D. not representative of the U.S. population.

D 12. In the United States, approximately what percentage of phone numbers are unlisted, on
210 the average?
A. 5 percent
B. 10 percent
C. 15 percent.
D. 30 percent

A 13. Which of the following statements concerning pretests is correct?


228 A. Pretests are trial runs with a group of respondents.
B. Pretests are statistical tests run on data after it is collected to check on its internal consistency
before it is statistically analyzed.
C. Pretests are used to screen out unrepresentative subjects before questionnaires are
administered.
D. Pretests are generally unnecessary if a well-designed questionnaire is used.

D 14. Which of the following devices is typically MOST effective in increasing response
217 rates in surveys?
A. Personalized cover letter
B. Type of postage used to mail the questionnaire
Chapter 1 The Role of Business Research. 122

C. Color of the questionnaire


D. Monetary incentive

B 15. When a sampling unit cannot be contacted on the first visit, a systematic procedure
206 normally initiated to make contact at another time is referred to as:
A. not-at-home revisitation process.
B. callback procedure.
C. refusal reduction technique.
D. none of the above.

A 16. With respect to anonymity of response, the survey methods would typically be ranked
229 as follows (highest to lowest):
A. mail, telephone, personal.
B. personal, mail, telephone.
C. telephone, personal, mail.
D. No generalizations can be drawn.

C 17. Which of the following is NOT a disadvantage of telephone interviews?


208 A. The length of interview must be limited.
B. Visual aids cannot be utilized.
C. slow speed of data collection
D. more impersonal than face-to-face interviews

B 18. A poorly designed survey is returned by only 20 percent of those sampled. It has a 20
215 percent:
Chapter 1 The Role of Business Research. 123

A. coverage rate.
B. response rate.
C. sampling percentage.
D. interaction rate.

C 19. When comparing the typical door-to-door personal interview with the typical mail
202 survey, personal interviews are more appropriately described by each of these characteristics EXCEPT:
A. greater speed of data collection.
B. higher respondent cooperation.
C. higher possibility of respondent misunderstanding.
D. greater versatility of question format (questioning).

C 20. Which of the following phrases concerning the advantages of personal interviews is
202 FALSE?
A. High participation rate
B. More representative sample than mail surveys
C. Includes more individuals living in apartment buildings with security systems
D. All of the above are true.

B 21. Which of the following, concerning questionnaire length, is TRUE?


214 A. Telephone interviews typically last 30 minutes or longer.
B. Personal interviews may last perhaps an hour and a half.
C. Mail surveys should not exceed two or at most three pages in length.
D. All of the above are correct.

D 22. Which of the following statements conceding the participation rate for personal
202 interviews, compared to mail surveys, is FALSE?
Chapter 1 The Role of Business Research. 124

A. The presence of an interviewer generally increases the percentage of people willing to


respond.
B. Hispanics, regardless of education, frequently prefer oral to written communication.
C. Certain groups, such as older, retired persons, are often over-represented.
D. Type of residential unit, such as high security apartment buildings, usually has a positive
impact on response rates.

B 23. High cost, lower standardization of questioning, and limited geographic dispersion are
203 disadvantages of surveys.
A. telephone
B. personal interview
C. mail
D. mall intercept

B 24. Compared with personal interviews, telephone interviews generally:


207 A. are not a prime method of survey research.
B. are appropriate for collecting information on personal or sensitive topics.
C. provide less representative samples.
D. all of the above

D 25. A mail questionnaire would MOST likely be used to survey which of the following
212 groups?
A. housewives
B. college students
C. unemployed people
D. farmers

C 26. Who among the following are LEAST likely to respond to a mail survey?
215 A. Individuals interested in the general subject matter of the survey
B. People who hold extreme positions on the survey topic
C. Less educated respondents
Chapter 1 The Role of Business Research. 125

D. Those who receive a follow-up questionnaire

C 27. If 400 people are mailed a questionnaire and 120 of them return it to the researcher,
215 this survey is said to have a response rate of:
A. 120.
B. 3.33.
C. 30 percent.
D. 400.

A 28. Which of the following is NOT a problem in creating a sample for telephone
210 interviews?
A. Random digit dialing skips many numbers.
B. Telephone ownership varies among income and ethnic groups.
C. Not-at-homes and refusals
D. Unlisted phones

D 29. What is the typical response rate of personal interviews?


215 A. 10 to 20 percent
B. 30 to 40 percent
C. 50 to 60 percent
D. 80 to 90 percent

D 30. A is the most popular or prime method of survey research.


207 A. personal interview--door-to-door
B. personal interview--mall intercept
C. self-administered survey
D. telephone survey
Chapter 1 The Role of Business Research. 126

B 31. Which of the following survey methods typically ranks HIGHEST on standardization
217 of questioning?
A. Personal
B. Mail
C. Telephone
D. All rank about the same

A 32. The type of survey method which typically ranks highest on response rates is:
228 A. Personal.
B. Mail.
C. Telephone.
D. All rank about the same.

D 33. If 800 people are mailed a survey and 230 of them return it to the researcher, the
215 survey is said to have a response rate of:
A. 230.
B. 800.
C. 3.48.
D. 28.8 percent.
C 34. A researcher who is investigating consumer reactions to a videotape of a proposed
203 television commercial is most likely to use:
A. telephone interviews.
B. door-to-door interviews.
C. mall intercept interviews.
D. self-administered questionnaires.

C 35. When comparing telephone interviews to door-to-door personal interviews, telephone


228 interviews are more appropriately described by each of these characteristics EXCEPT:
A. faster speed of data collection.
Chapter 1 The Role of Business Research. 127

B. greater geographic flexibility.


C. lower possibility for respondent misunderstanding.
D. easier call-back or follow-up.

C 36. Suppose J.C. Penney wishes to estimate sales orders associated with a "mock" version
213 of its catalogue. It wants respondents to have time to reflect on their answers. The best type of survey
would be:
A. personal interviews--door-to-door.
B. personal interviews--mall intercept.
C. mail survey.
D. telephone survey.

A 37. Which of the following should be included in the cover letter of a mail survey?
215 A. Assurance of confidentiality of the data
B. An incentive for participation in the study
C. Assurance that the survey will only take a few minutes
D. A description of how the individual was selected to participate

B 38. If a researcher is afraid that the intended subject will not be the respondent in a survey:
215 A. the researcher is probably using a random digit dialing telephone survey.
B. the researcher is probably using a mail questionnaire directed at corporate executives.
C. the researcher is probably using personal interviews of poorly educated respondents.
D. the researcher is probably using follow-up mailings in an attempt to increase the response
rate.

D 39. Obtaining accurate, sensitive information, such as consumption of alcoholic beverages,


203 is best obtained in a:
A. telephone survey.
B. personal interview.
C. mall intercept survey.
D. mail survey.
Chapter 1 The Role of Business Research. 128

C 40. High anonymity of respondent, easy follow-up for "call back," and low to moderate
228 response rates are characteristic of surveys.
A. telephone
B. personal interview
C. mail
D. none of the above

B 41. Geographic dispersion is a DISADVANTAGE of surveys.


228 A. telephone
B. personal interview
C. mail
D. none of the above

D 42. Internet surveys allow marketers to do all of the following EXCEPT:


221 A. reach a large audience from around the globe.
B. to personalize individual messages.
C. to secure answers in a simple manner.
D. to share one respondent’s answers with another respondent

D 43. Once an Internet questionnaire has been developed:


221 A. the incremental cost of additional respondents is marginal.
B. the anonymity of the Internet encourages respondents to provide honest answers to sensitive
questions.
C. re-contacting those who have not completed the survey is quick and easy.
D. all of the above

A 44. Which of the following statements about Internet surveys is FALSE?


222 A. The quality of Internet samples is very consistent.
Chapter 1 The Role of Business Research. 129

B. Internet surveys allow researchers to sample a large audience from around the globe
C. Internet surveys allow researchers to personalize individual messages on questionnaires.
D. With Internet surveys, respondents may worry if personal information will remain private.

Fill in the Blank

1. Personal interviews conducted in shopping malls are called interviews.


203
mall intercept

2. Suppose you participate in a survey by interacting directly with a computer that has
224 been programmed to ask questions based on your previous answers. You have just participated in a(n)
_____ _____ _____.

computer-assisted survey

3. The term _ _____ refers to an unanswered question on an otherwise complete


201 survey.

item nonresponse

4. Speed of data collection is a great advantage in surveys.


208
telephone

5. The type of survey that offers the greatest degree of anonymity to the respondent is
229 a(n) survey.
Chapter 1 The Role of Business Research. 130

mail or self-administered

6. The letter that accompanies the questionnaire or that is printed on the first page of a
215 questionnaire booklet is referred to as a(n) .

cover letter

7. A(n) is an attempt to recontact an individual selected for the sample who was not
206 available at the initial contact.

callback

8. A(n) involves the gathering of information through face-to-face contact with


199 individuals.

personal interview

9. If survey respondents are selected by using a random numbers table to generate


210 telephone numbers, this is called __ _____ _____.

random digit dialing

10. After responses to a mail survey begin coming back, researchers may send reminders
215 asking to those who have not yet responded. These reminders are called .

follow-ups

11. A trial run with a group of respondents used to screen out problems in the design of a
228 questionnaire is called a(n) .
Chapter 1 The Role of Business Research. 131

pretest

12. Providing a monetary incentive in the mail questionnaire, conducting a follow-up


215 mailing, or providing advance notification by mail are ways to increase in a mail survey.

response rates

13. When a research objective requires an extremely lengthy questionnaire, the most
201 effective type of survey may be a(n) _____ _____.

personal interview

14. The presence of an interviewer generally (increases/decreases) the percentage of


201 people willing to complete a personal interview.

increases

15. Visual props or demonstration materials are most easily discussed in ___ _____
201 surveys.

personal interview

16. The term _ _____ _____ describes an interview in which an interviewer reads
207 questions from a computer screen and enters responses directly into the computer.

computer-assisted telephone interviewing

17. When an interviewer asks questions to attempt to clarify the answer of a respondent
201 during a personal interview, this is known as a(n) _____ question.
Chapter 1 The Role of Business Research. 132

probing

Chapter 11
Observation Methods

True-False Questions

F 1. In participant observation, the researcher gains firsthand knowledge by observing a


244 situation through a one-way mirror.

T 2. Secondary data analysis uses observation methods.


235

T 3. Analysis of household trash is generally a reliable indication of what consumers


245 actually consume.

F 4. The motivation of a respondent can be observed.


235

F 5. Researchers should never ask subjects for permission to observe them, as this will
245 distort the experiment.

F 6. Mechanical observation methods are always obtrusive observations.


248
Chapter 1 The Role of Business Research. 133

F 7. Respondent error is maximized with hidden, unobstrusive observation.


236

F 8. Direct observation is error-free.


239

T 9. Hidden observation has an ethical issue in terms of the respondent’s right to privacy.
244

T 10. Observing behavior patterns over a period of several weeks is extremely difficult and
235 costly.

T 11. Many observation studies are unobtrusive.


236

T 12. Unobtrusive observation means that the research does not require a reaction from the
236 subjects of the research.

T 13. Hidden observations have an ethical issue in terms of the respondent’s right to privacy.
245

F 14. Because there is no interaction with the respondent, direct observation is error-free.
239

T 15. "Response latency" refers to the time necessary to make a choice between two
240 alternatives.

T 16. In order to plan effective competitive programming, a cable television staffer might do
248 a content analysis of network programming.
Chapter 1 The Role of Business Research. 134

F 17. Scientific observation is the systematic process of recording the behavioral patterns of
235 people by questioning or communicating with them.

T 18. Content analysis in observation studies deals with the message content.
248

T 19. A wide variety of information about the behavior of people and objects can be
235 observed.

T 20. Surveys emphasize verbal responses, whereas observation studies emphasize and allow
237 for systematic recordings of nonverbal behavior.

T 21. Observation studies can provide complementary evidence of the respondent’s true
237 feelings.

F 22. Direct observation cannot produce a detailed record of what a respondent actually
238 does.

T 23. Although the observation method may be used to describe a wide variety of behaviors,
235 cognitive phenomena such as attitudes, motivations, and preferences cannot be observed.

F 24. It seems unlikely that many types of data can be obtained more accurately through
238 observation than by direct questioning.

T 25. A visible mark of some past event is known as physical-trace evidence.


245
T 26. Jupiter Media Metrics Company tracks the use of Internet Web sites.
250
Chapter 1 The Role of Business Research. 135

T 27. Optical scanners are useful in researching inventory levels and shipments.
253

F 28. Experimentation is the systematic process of recording the behavioral patterns of


235 people, objects, and occurrences without questioning or communicating with respondents.

T 29. Head nods, smiles, raised eyebrows, and other facial expressions or body movements
237 have been recognized as communication symbols.

F 30. Situations where the subjects are unaware that the observation is taking place are called
236 visible observations.

T 31. The measurement of changes in the diameter of a respondent’s eye pupils is done by
252 means of a pupilometer.

T 32. Supermarket UPC code scanners are an example of mechanical observation.


253

Multiple Choice Questions

A 1. When a researcher pretends to be a customer on a United Airlines flight between New


240 York and Los Angeles so that he can complain to a flight attendant about her poor customer service
(when, in reality, the service has been satisfactory), this is an example of:
A. a contrived observation.
B. a mechanical observation.
C. content analysis.
D. response latency.

D 2. Investigation of household trash in Arizona shows that the most popular baby food in
Chapter 1 The Role of Business Research. 136

245 Hispanic households is squash, while peas are the baby food winner in Anglo households. This is an
example of:
A. ethical issues in observation research.
B. participant observation.
C. voice pitch analysis.
D. physical-trace evidence.

A 3. When a researcher identifies himself as a researcher to a management group and then


244 joins a meeting of this group in order to observe the behavior of individuals at that meeting, this is an
example of:
A. participant observation.
B. indirect observation.
C. observer bias.
D. response latency.

B 4. The A.C. Nielsen PeopleMeter Television Index, which is used to estimate national
248 television audiences, is an example of:
A. physical-trace evidence.
B. mechanical observation.
C. psychogalvanometer research.
D. observer bias.

B 5. When the wear-and-tear on the cover of a library book is used as a measure of the
245 frequency with which this book has been used, this is an example of:
A. visible observation.
B. physical-trace evidence.
C. mechanical observation.
D. content analysis.

C 6. When a team of researchers obtains permission to inventory the brands, sizes, and
247 quantities of food in a respondent’s kitchen, this is an example of:
Chapter 1 The Role of Business Research. 137

A. a contrived observation.
B. a mechanical observation.
C. a pantry audit.
D. a hidden observation.

A 7. The amount of time that a subject takes to make a choice between two alternatives is
240 called:
A. response latency.
B. scientifically contrived observation.
C. hidden observation.
D. galvanic skin response (GSR).

D 8. A(n) records eye movements in relation to some stimulus.


251 A. psychogalvanometer
B. audiometer
C. voice pitch analyzer
D. eye-tracking equipment

A 9. A(n) measures emotional responses to various stimuli by measuring the rate of


253 perspiration.
A. psychogalvanometer
B. audiometer
C. oculometer
D. pupilometer

D 10. The Nielsen Television Index uses a PeopleMeter to monitor all of the following
248 EXCEPT:
A. what time a television set was turned on.
B. how long it remained on.
C. channels where the television was set.
Chapter 1 The Role of Business Research. 138

D. all of the above are monitored.

A 11. If a researcher wanted to measure unconscious eye movements of subjects, she could
251 use a(n):
A. eye-tracking monitor.
B. psychogalvanometer.
C. unconsciometer.
D. none of the above could be used.

C 12. Observation allows for all of the following EXCEPT:


235 A. the systematic recording of nonverbal behavior.
B. the amplification of the results from other forms of research by providing complementary
evidence.
C. the gathering of evidence to explain purchase intentions.
D. the gathering and recording of what people actually do or what events take place during a
purchase situation.

D 13. Which of the following types of content cannot be observed?


235 A. Physical actions and evidences such as shopping patterns
B. Verbal behavior such as sales conversations
C. Expressive behavior such as tone of voice or smiling
D. Attitudinal reactions such as preference

D 14. Tracking the percentage of women on the cover of Time magazine over the period
248 1980-2000 is an example of:
A. response latency.
B. hidden observation.
C. the use of a mystery shopper.
D. content analysis.

D 15. The direct observation method is often used to collect data:


Chapter 1 The Role of Business Research. 139

239 A. when respondents are unable to recall accurately.


B. because it is the most straightforward method.
C. because it is frequently an economical observation technique.
D. all of the above.

B 16. In direct observation, if the observer is subjective in the recording of what is occurring,
240 the study is said to have:
A. content analysis.
B. observer bias.
C. demand characteristics.
D. response latency.

A 17. Hidden, unobtrusive observation is often used because:


236 A. respondent error is minimized.
B. subjects are aware they are being observed.
C. it raises ethical questions.
D. the observer is often well-known to the subjects.

B 18. An airline passenger (who is an observation researcher) complaining about an airline


243 meal, although the meal is quite tasty, is referred to as
A. a content analyst.
B. a mystery shopper.
C. a hidden scientist.
D. a response analyst.

A 19. Response latency:


240 A. is related to the concept of "psychological distance" between brands as
measured by decision time to make a choice.
B. refers to the latent error existing in mechanical observation.
C. is a computer-based statistical procedure based on a latency matrix.
Chapter 1 The Role of Business Research. 140

D. is none of the above.

B 20. The technique useful for systematically analyzing the specific information content and
248 characteristics of a message is:
A. response latency.
B. content analysis.
C. physiological reactions.
D. physical trace evidence.

C 21. At the Chicago Museum of Science and Industry, floor tiles around the hatching-chick
245 exhibit must be replaced every six weeks, while tiles in other areas need not be replaced for years. This
is an example of:
A. response latency.
B. physiological reactions.
C. physical-trace evidence.
D content analysis.

B 22. The researcher utilizing the of data collection witnesses and records information as
235 events occur or compiles evidence from past events.
A. survey method
B. observation method
C. secondary data method
D. experimental method

C 23. Which of the following statements about observation is FALSE?


235 A. Observation methods may be utilized to record spatial relations and locations.
B. Observation methods often are unobtrusive.
C. Observation allows for the systematic recording of behavioral intentions and attitudes.
Chapter 1 The Role of Business Research. 141

D. Observation studies may amplify the results of other forms of research by providing
complementary or supplemental evidence.

D 24. All of the following statements adequately describe direct observation EXCEPT:
238 A. The observer plays a passive role and does not attempt to manipulate a
situation.
B. Many types of data may be obtained more accurately than through questioning.
C. The observer is recording events instantaneously.
D. The observer always interacts openly with the subject.

A 25. Counting the number of shots of cheerleaders at a Monday Night Football Game is an
248 example of:
A. content analysis.
B. observer bias.
C. response latency.
D. a contrived observation.

D 26. A consumer researcher who records television commercials on videotape, then


248 systematically studies the advertising themes, appeals, and claims is using what form of observation?
A. Pupilometer
B. Response latency
C. Contrived observation
D. Content analysis

D 27. Using the UPC code on the package to record the market share of laundry detergents
253 through optical scanners at supermarkets is an example of:
Chapter 1 The Role of Business Research. 142

A. a contrived observation.
B. response latency.
C. content analysis.
D. mechanical observation.

D 28. All of the following describe physiological measures of observation EXCEPT:


252 A. pupilometer.
B. eye-tracking..
C. voice-pitch analysis.
D. participant observation.

Fill in the Blank

1. The term describes a distortion of measurement resulting from the cognitive


239 behavior or actions of the observer.

observer bias

2. If we want to observe and record changes in the diameter of a research subject's eye
252 pupils’, we would use a(n) .

pupilometer

3. When observers in a shopping center record the license plate numbers on cars in order
239 to determine the zip codes of shoppers, this is an example of a(n) ______ ______ study.

unobtrusive observation
Chapter 1 The Role of Business Research. 143

4. Television viewing patterns of the members of a household panel are an example of the
248 observation of _____ actions.

physical

5. If we want to measure the unconscious movements of a subject's eyes, we would use


251 a(n) _____ _____ .

eye-tracking monitor
6. When intervention by the investigator creates an artificial environment to test a
240 hypothesis using the observation method, it is called a(n) ____ _____.

contrived observation

7. When observers record the decision time necessary to make a choice between
240 alternatives, they are measuring .

response latency

8. The classic example of investigating tiles around the hatching-chick exhibit in


245 Chicago's Museum of Science and Industry involved evidence.

physical trace

9. A(n) requires inventory of the brands, quantities, and package sizes of food
247 items in a consumer's home.

pantry audit
Chapter 1 The Role of Business Research. 144

10. If we obtain data by observing and analyzing the content of the message of
248 advertisements, newspaper articles, television programs, letters, and the like, we are conducting a(n)
.

content analysis

11. When communication is not necessary with the respondent in the observation method,
236 it may be said that the observation methods are .

unobtrusive

12. The results of observation studies may the results of other forms of research.
238
complement

13. The systematic process of recording the behavioral patterns of people, objects, and
235 occurrences without questioning or communicating with them is called ___ _____.

scientific observation

14. Situations where the observer's presence is known to the subject are ___ observation.
236
visible

15. If a researcher makes a straightforward attempt to observe and record what actually
238 occurs, without creating an artificial situation, this is _____ observation.

direct
Chapter 1 The Role of Business Research. 145

16. The term _____ describes situations in which an observer gains firsthand
244 knowledge by being in or around the social setting which is being investigated.

participant observation

17. When the Naisbitt Group studies the content of local events by analyzing 6,000 local
247 newspapers so that it can publish a quarterly report of these trends, this is an example of _____ _____.

content analysis

18. If we use a videotape camera to observe and record subjects' behavior, this is an
248 example of _____ _____.

mechanical observation

Chapter 12
Experimental Research

True-False Questions

T 1. The purpose of experimental research is to allow the researcher to control the situation
257 so that causal relationships among variables may be studied.

F 2. In a well-designed experiment, the control group and the experimental group consist of
261 the same people.
Chapter 1 The Role of Business Research. 146

T 3. Test units may be people, stores, departments, or sales territories.


262

F 4. A laboratory experiment is an experiment conducted in a natural setting, often for a


270 long period of time.

F 5. A field experiment is an experiment conducted in an artificial setting that gives the


270 researcher almost complete control over the research setting.

T 6. A quasi-experimental design is an experimental design that fails to control adequately


275 for loss of external or internal validity.

T 7. We would diagram a one-shot design as follows: X O1.


275

F 8. A typical quasi-experimental design might be diagrammed like this:


278

Experimental group R X O1

Control group R O2

F 9. The most common way to prevent test units from differing from one another on key
264 variables is to use a matching technique.

F 10. An experiment diagram as follows would be a static group design:


276

Experimental group 1 R O1 X O2

Control group 1 R O3 O4
Chapter 1 The Role of Business Research. 147

Experimental group 2 R X O5

Control group 2 R O6

T 11. The before-after with control group is the classic experimental design and looks like
277 this:

Experimental group R O 1 X O2

Control group R O3 O4

T 12. Debriefing refers to the process of providing subjects with all pertinent facts about the
268 nature and purpose of the experiment after its completion.

T 13. Demand characteristics are a source of constant error in experiments.


265

F 14. It is not possible to assess the effects of more than one independent variable in a single
281 experiment.

T 15. The most prominent demand characteristic in most experiments is the person who
265 administers the experimental conditions..

F 16. In factorial experimental designs, a single independent variable is changed to observe


283 its effect on a single dependent variable.

T 17. Interaction is said to occur when the effect of one treatment is different at different
284 levels of the other treatment.

F 18. In basic experimental designs, the interaction of two independent variables can be
275 studied.
Chapter 1 The Role of Business Research. 148

F 19. Field experiments are conducted in laboratory settings.


270

F 20. A factorial design has two or more dependent variables.


283

F 21. External validity has to do with the determination of whether the independent variable
273 was the sole cause of the changes in the dependent variable.

F 22. A major advantage of the static group design is that we have some assurance that the
276 groups were equal on the variables of interest before the experimental group received the treatment.

T 23. The effect of testing can only occur in "before-after" experiments.


272

T 24. One of the experimental researcher's main goals is to identify the possible extraneous
265 variables other than the treatment that may affect the results of the experiment and to eliminate or
control them.

T 25. Blinding refers to the control of subjects' knowledge of whether or not they have been
267 given a particular experimental treatment, such as not informing the subjects whether they have the diet
or regular formulation of a cola drink.

T 26. Internal validity has to do with the interpretation of the cause-and-effect relationship in
271 an experiment.

T 27. In internal validity, testing is also called the pretesting effect.


272

T 28. Factorial designs allow for the testing of the effects of two or more treatments at
283 various levels.
Chapter 1 The Role of Business Research. 149

F 29. In a business experiment, the researcher manipulates all the relevant, extraneous
260 variables and records the impact on the independent variable.

T 30. The major difference between experimental research and other research is the
257 experimenter's ability to "hold constant" conditions and to manipulate the independent variable.

F 31. Internal validity has to do with the ability of the researcher to generalize the results of
271 the study to the external environment.

F 32. Naturalistic field experiments tend to have less external validity than laboratory
274 experiments.

T 33. Often the dependent variable selection process, like problem definition, is not as
262 carefully considered by the researchers as it should be.

T 34. The experimenter's choice of a dependent variable determines what type of answer is
262 given to the research question.

F 35. Quasi-experimental designs are a type of true experimental design.


275

T 36. Random assignment of subjects to various experimental groups is the most common
267 technique used to avoid the problem of subjects differing from each other on key variables.

T 37. In one-shot designs, there is no way to control extraneous variables.


275

T 38. The term "demand characteristics" refers to experimental design procedures that
Chapter 1 The Role of Business Research. 150

265 unintentionally give hints to subjects about the experimenter's hypothesis.

T 39. The one-group pretest-posttest design allows comparisons of the same subjects both
275 before and after training in a human relations study.

T 40. If two different taste formulations of an orange juice are marked in cans with either a
267 triangle or a square and neither the subjects nor the experimenters know which taste formulation is in
which can, the experiment is said to be double-blinded.

T 41. The first step in a true experimental design is to assign subjects randomly to
277 experimental (and control) conditions.

T 42. In a basic experimental design, a single independent variable is manipulated to observe


269 its effect on another single dependent variable.

F 43. External validity refers to the question of whether the experimental treatment was the
273 sole cause in observing changes in the dependent variable.

F 44. Internal validity is the quality of being able to generalize beyond the data of the
271 experiment.

T 45. In many studies, the use of student subjects as surrogate businesspeople causes a
274 problem of external validity.

T 46. Naturalistic field experiments tend to have greater external validity than artificial
274 laboratory experiments.

F 47. The "Hawthorne effect" demonstrates that subjects do not normally perform differently
266 when they know they are experimental subjects.
Chapter 1 The Role of Business Research. 151

F 48. An experimenter should avoid disguising the purpose of the experiment because
266 participants will then not know how to be good subjects to help confirm the hypothesis.

T 49. The Solomon Four-Group design combines the before-after with control group design
279 with the after-only with control group design.

T 50. Field experiments are generally utilized to "fine tune" business strategies and to
274 determine sales volume.

T 51. An experiment is a research technique allowing researchers to control the research


257 situation so that causal relationships among variables may be evaluated.

T 52. An independent variable may be changed in value or altered independently of any


257 other variable.

F 53. In the pretest-posttest with control group design, all groups are exposed to the
277 experimental treatment.

T 54. Experimentation may require that an artificial situation be created that is not exactly
270 like the purchasing situation.

T 55. If the independent variable is defined as levels of advertising dollar expenditures, the
260 independent variable is a continuous variable.

F 56. Alternative manipulations of the dependent variable are called experimental treatments.
260

F 57. The Solomon Four-Group design is frequently used in business research.


279
Chapter 1 The Role of Business Research. 152

T 58. The independent variable is hypothesized to be the causal influence on the dependent
257 variable..

T 59. Supermarkets, sales territories, or people may be test units.


262

T 60. The random assignment of experimental treatments to the different experimental


268 groups might be called "control by chance."

T 61. Suppose a before-after experiment was being conducted to test a new and very unusual
272 packaging strategy. If the unusual package receives much publicity from the broadcast media, a history
effect influences internal validity.

F 62. A history effect jeopardizing internal validity might be a group of subjects in the
272 experimental group getting hungry or bored because of the long duration of the experiment.

T 63. The mortality effect jeopardizing internal validity may occur if many subjects
273 withdraw from one experimental treatment group and not from the control group.

T 64. The problem of mortality in internal validity may also be referred to as sample
273 attrition.

T 65. A loss of internal validity due to maturation might likely occur in an experiment of a
272 new compensation program for sales personnel that lasts over a one-year period of time.

T 66. In the one-shot design, there is no means for controlling extraneous influences.
275

T 67. Interaction effects are assumed to be either minimal or nonexistent in Latin square
287 designs.
Chapter 1 The Role of Business Research. 153

F 68. The one-shot design controls for history effects, but not any other sources of
275 extraneous variation.

T 69. Assignment errors can be controlled by the use of a matching technique on the basis of
264 important background information..

T 70. A static-group design is an after-only design in which subjects in the experimental


276 group are measured after exposure to the experimental treatment, and the control group is measured
without exposure to the experimental treatment; no premeasure is taken.

Multiple Choice Questions

C 1. “Does the size of the package affect the amount of the product which is consumed?” is
256 a question that should best be studied through:
A. exploratory research.
B. descriptive research.
C. experimental research.
D. focus group research.

A 2. An experimenter has some degree of control over the:


257 A. independent variable.
B. correlative variable.
C. history effect.
D. All of the above, if the experiment is conducted properly.

C 3. An experimental test of a new outboard motor lubricant gave misleading results


263 because one of the test sites was Florida, where the lubricant was never exposed to cold winter weather.
This is an example of:
Chapter 1 The Role of Business Research. 154

A. test unit failure.


B. the instrumentation effect.
C. sample selection error.
D. O1 X O2 error.

B 4. If subjects change their normal behavior in order to cooperate with the experimenter,
265 affecting the results of the experiment, this is called:
A. the double-blind effect.
B. the guinea pig effect.
C. experimenter bias.
D. the interaction effect.

B 5. If a researcher wants to answer the question: “Will adult women (ages 25-49) use
256 more of a cooking oil when it is in a full container or a half-empty one?”, the best type of study to use
would be a(n):
A. descriptive study.
B. experimental study.
C. exploratory study.
D. focus group study.

D 6. After an experiment is completed, a researcher explains the nature and purpose of the
268 experiment to all the subjects. This is called:
A. blinding.
B. instrumentation.
C. compromise design.
D. debriefing.

A 7. In a basic experimental design, variable(s) is/are manipulated.


275 A. one
B. two
Chapter 1 The Role of Business Research. 155

C. three to five
D. ten or more

D 8. The one-group pretest-posttest design:


276 A. is an example of a “good” experimental design.
B. uses a control group.
C. the influence of the experimental treatment is: O2.
D. does not control for history.

A 9. The unit price example in the text showed that a change in the presentation of unit
257 price information (the variable) had caused a change in the average unit price paid (the variable).
A. independent, dependent
B. experimental, independent
C. dependent, independent
D. research, control

B 10. Decisions must be made about several basic elements of an experiment. One of these
262 issues is:
A. manipulation of the extraneous variable(s).
B. selection and measurement of the dependent variable.
C. control over the dependent variable.
D. selection of assignment of extraneous variables.

B 11. The purpose of most business research experimentation is to measure and compare the
262 effects of the experimental treatments on the variable.
A. independent
B. dependent
C. control
Chapter 1 The Role of Business Research. 156

D. extraneous

B 12. One of the following research methods differs from other methods because it gives the
257 researcher a high degree of control over the research situation. Which is it?
A. Surveys
B. Experiments
C. Observation studies
D. Secondary data studies

D 13. If we are experimenting with different forms of advertising copy appeals, the
262 dependent variable might be defined as:
A. a measure of advertising awareness.
B. recall.
C. change in brand preference.
D. any of the above.

C 14. If subjects in one experimental group are always administered the treatment in the
264 morning, while subjects in a second experimental group are always administered the treatment in the
afternoon, then error has occurred.
A. sampling
B. random experimental
C. constant experimental
D. treatment

A 15. The result of a constant error:


264 A. is to distort the experimental results in a particular direction.
B. is not to distort the experimental results in any particular direction, but to obscure them.
C. is neither to distort nor obscure the experimental results.
D. has no effect on experimental results.
Chapter 1 The Role of Business Research. 157

B 16. In a human resources training study, “manager turnover” is most likely to be a(n):
262 A. independent variable.
B. dependent variable.
C. control group variable.
D. random assignment variable.

D 17. Which of the following is NOT a major factor influencing internal validity?
271 A. History
B. Mortality
C. Instrumentation
D. Experimentation

D 18. The influence of specific events in the external environment that occur between the
272 first and second measurements and are beyond the control of the experimenter is referred to as:
A. selection.
B. testing.
C. maturation.
D. history.

B 19. If, during the course of an experiment, subjects change in some way that will have an
272 impact on the experimental results, the effect is referred to as:
A. history.
B. maturation.
C. selection.
D. mortality.

A 20. Students taking achievement tests for a second time usually do better than they did the
272 first time. This is an example of:
A. testing effect.
B. maturation effect.
Chapter 1 The Role of Business Research. 158

C. history effect.
D. none of the above.

D 21. In a test marketing study of a new type of instant tea, sales volume (as measured by
262 dollar sales) is most likely to be a(n):
A. random variable.
B. independent variable.
C. control variable.
D. dependent variable.

C 22. In a test marketing study, initial trial purchase is most likely to be a(n):
262 A. independent variable.
B. control variable.
C. dependent variable.
D. random variable.

B 23. If a study of factory workers finds that workers perform better on a job assembly task if
267 they had been exposed to another type of job assembly task earlier in the study, the study is said to have
which type of bias?
A. Experimenter bias
B. Order of presentation bias
C. Interviewer bias
D. Double-blind bias

A 24. According to the symbols used in describing experimental designs,


275 A. X is the application of the experimental treatment.
B. O is the observation of the independent variable.
Chapter 1 The Role of Business Research. 159

C. vertical distances represent movements in time.


D. subscripts refer to different test units.

C 25. In the unit-pricing experiment described in the textbook, the independent or


257 experimental variable was:
A. store type.
B. average-price-paid-per-unit purchased.
C. unit price format (shelf tag vs. list).
D. city.

B 26. In the unit-pricing experiment described in the textbook, the dependent variable was:
257 A. list format (shelf tag vs. list).
B. average-price-per-unit.
C. stores.
D. the number of weeks.

D 27. In the unit-pricing experiment described in the textbook, if a competitor introduced a


272 two-for-one sale in this mid-western city, the experiment would have had problems of:
A. maturation.
B. testing.
C. mortality.
D. history.

C 28. As experiments _____ in naturalism, they approach pure _____ experiments, and
274 as they become _____ artificial, they approach _____ experiments.
A. increase; field; less; laboratory
Chapter 1 The Role of Business Research. 160

B. decrease; field; less; laboratory


C. increase; field; more; laboratory
D. decrease; field; more; laboratory

A 29. In terms of internal validity, a large layoff of middle-level managers during a research
272 study would have what type of extraneous variable?
A. History
B. Maturation
C. Testing
D. Instrumentation

D 30. If the interviewers are changed during a research study, this would have what type of
273 effect on the extraneous variables?
A. Testing effect
B. History effect
C. Selection bias
D. Instrumentation

D 31. A static group design:


277 A. uses two experimental groups.
B. assigns subjects randomly.
C. does not eliminate the “volunteer effect.”
D. is often applied in "use tests" for new products.

C 32. The before-after design with control group is least susceptible to problems of:
278 A. selection bias.
B. history effect.
C. testing effect.
D. maturation.
Chapter 1 The Role of Business Research. 161

C 33. The after-only with control group design eliminates the problems of:
278 A. selection bias and mortality.
B. mortality and testing.
C. testing and instrumentation.
D. selection bias and testing.

B 34. Which of the following requires randomization of subject assignment?


277 A. One-group pretest-posttest design.
B. Pretest-posttest control group design.
C. All of the above.
D. None of the above.

A 35. An automobile dealer, after a very cold winter, found himself with a very large
275 inventory. He experimented with offering a free trip to Chicago (X) with every car sold. He recorded
sales (O) after the promotion. This is an example of:
A. a one-shot (after only) design.
B. a static group design.
C. a completely chance design.
D. a completely randomized design.

C 36. An experiment that investigates long-term structural change is:


280 A. the static group design.
B. the Solomon four-group design.
C. a time series design.
D. a Latin square design.
Chapter 1 The Role of Business Research. 162

C 37. An experimental researcher manipulated advertising (high versus low) and price (high
284 versus low). When advertising was high and price was high there was not much of an influence on sales
volume, but when advertising was high and price was low, there was a great influence on sales volume.
This indicates:
A. a main effect for advertising.
B. a main effect for price.
C. an interaction effect.
D. a factorial effect.

C 38. A researcher wishes to simultaneously investigate the package colors blue and green
284 and price levels of $20, $30, and $40 in a factorial experiment. How many cells or test markets will be
required?
A. two
B. five
C. six
D. three

B 39. A major assumption of the Latin square design is:


287 A. all variables have multiple levels.
B. interaction effects are nonexistent.
C. the number of treatments is limited to three.
D. there can be no more than one confounding extraneous variable.

A 40. Employee turnover during a research study has the most effect on which of the
273 following factors which affect the internal validity of the study?
A. Mortality
B. Testing
C. Instrumentation
D. History
Chapter 1 The Role of Business Research. 163

C 41. A major advantage of the is its ability to measure the interaction effect among two
284 or more treatments at various levels.
A. completely randomized design
B. randomized block design
C. factorial design
D. quasi-randomized design

C 42. If the researcher is attempting to answer the question: “Will the test market results in
273 Kansas City hold true in California?”, the researcher is most concerned with:
A. the history effect.
B. internal validity.
C. external validity.
D. mortality.

B 43. If age is expected to influence savings behavior, a bank conducting an experiment may
264 have the most assurance that there are no intersubject differences if subjects in all experimental groups:
A. are customers of the bank.
B. are matched on age.
C. are given a pretest.
D. all of the above.

A 44. When a prior measurement affects a test unit's response to the experiment, we might
272 say that occurs.
A. testing effect
B. sensitizing
C. prioritizing
D. maturation
Chapter 1 The Role of Business Research. 164

A 45. In general, field experiments have _____ internal validity and _____ external validity
274 than laboratory experiments.
A. less; more
B. less; less
C. more; more
D. more; less

B 46. The characteristic that differentiates true experimental design from quasi-experimental
277 design is:
A. the use of a control group.
B. random assignment of subjects to experimental groups.
C. multiple observations.
D. all of the above.

D 47. The one-shot design may have severe validity problems because:
275 A. random assignment is made.
B. the group is not representative.
C. the experimental variable cannot be manipulated.
D. it provides little control over extraneous variables.

Fill in the Blank

1. If a research study is attempting to measure whether package size affects the amount of
256 product used, the independent variable is ____.

package size

2. Field experiments are conducted in ______ settings.


270
Chapter 1 The Role of Business Research. 165

natural

3. A one-group pretest-posttest design would be diagrammed as: ___ .


276
O 1 X O2

4. In an experiment, the group of subjects exposed to an experimental treatment is called


261 the ___ _____.

experimental group

5. In an experiment, the group of subjects not exposed to an experimental treatment is


261 called the ___ _____.

control group

6. The is a subject or entity whose responses to experimental treatments are


262 observed and measured.

test unit

7. A procedure for assigning subjects to groups by ensuring each respondent group is


264 equated on the basis of pertinent characteristics is called .

matching

8. An unintended effect on the results of an experiment, caused by the subjects knowing


266 that they are participants, is called the _____ _____ .
Chapter 1 The Role of Business Research. 166

Hawthorne effect

9. The quality of being able to generalize beyond the data of an experiment to other
273 subjects or groups in the population under study is known as ___ ______ .

external validity

10. The testing effect in internal validity is also called the _____ effect.
272
pretesting

11. A(n) refers to sample attrition that occurs when some subjects withdraw from
273 an experiment before it is completed, affecting its validity.

mortality effect

12. The term refers to the question of whether the experimental treatment was the
271 sole cause in observed changes in the dependent variable.

internal validity

13. Experimental error occurs when variables are allowed to have an influence on the
265 dependent variables.

extraneous

14. An error that occurs in the same experimental conditions every time the basic
264 experiment is repeated is called ___ ______ .
Chapter 1 The Role of Business Research. 167

constant error

15. The term refers to experimental design procedures that unintentionally hint to
265 subjects about the experimenter's hypotheses.

demand characteristics

16. During a day-long experiment, subjects may grow hungry, tired, or bored. If this
272 occurs, there is a possible problem with effects due to .

maturation

17. The process of providing subjects with all pertinent facts about the nature and purpose
268 of the experiment after its completion is called .

debriefing

18. A(n) experiment is an experiment conducted in a natural setting, often for a long
270 period of time.

field

19. Diagram a before-after with control group experiment: .


277

Experimental group: R O 1 X O2

Control group R O3 O4

20. A(n) experiment is an experiment conducted in an artificial setting that gives the
270 researcher almost complete control over the research setting.
Chapter 1 The Role of Business Research. 168

laboratory

21. In a(n) design, neither the subjects nor the experimenter knows which are the
267 experimental and which are the control conditions.

double-blind

22. The purpose of experimental research is to allow the researcher to control the research
257 situation so that relationships among variables may be evaluated.

causal

23. A(n) refers to specific events in the external environment occurring between the
272 first and second measurements that are beyond the control of the experimenter and that affect the
validity of the experiment.

history effect

24. Diagram an after-only design: .


275
X O1

25. Many business experiments may be conducted in a short period of time (a month or
280 two). However, business experiments that investigate long-term structural change may require a(n)
design.

time series

26. When experiments are conducted over long periods of time, they are most vulnerable
280 to changes.
Chapter 1 The Role of Business Research. 169

historical

27. The experiment diagramed as:


280
O 1 O 2 O 3 X O4 O 5 O 6

is called a(n) design.

time series

28. In a randomized block design, the researcher attempts to the effects of a single
282 variable by blocking out its effects.

isolate

29. The _____ design is a balanced, two-way classification scheme that attempts to
286 control or block out the effect of two or more extraneous factors by restricting randomization with
respect to the row and column effects. (Answer could be several words).

Latin square

30. The number of dollars spent on training may be any number of different values. This is
260 an example of an independent variable that is a(n) variable.

continuous

31. A procedure in which the assignment of subjects and treatments to groups is based on
267 chance is called _____ _____ .
Chapter 1 The Role of Business Research. 170

random assignment

32. Exposure of the same subjects to all experimental treatments, in order to eliminate
264 problems due to subject differences, is called ____ _______ .

repeated measures

33. An experimental design that investigates the interaction of two or more independent
283 variables is known as a _____ design.

factorial

34. The machine that is utilized to allow researchers to experiment with the visual impact
270 of advertising, packaging, and so on, by controlling the amount of time a visual image is exposed to a
subject is called a(n) .

tachistoscope

Chapter 13
Measurement and Scaling Concepts

True-False Questions

T 1. Asking different questions in order to measure the same variable provides a more
304 accurate cumulative measure than asking one question.

T 2. Although reliability is necessary for validity, it is not in itself sufficient to make a


304 measure valid.
Chapter 1 The Role of Business Research. 171

F 3. Sammy Sosa’s number 21 on his Chicago Cubs uniform indicates an ordinal scale.
296

F 4. A ratio scale is the simplest type of scale.


296

F 5. A nominal scale arranges objects according to their magnitude in an ordered


297 relationship.

F 6. When business managers are asked to rank their investment preferences, this is an
297 example of a nominal scale.

T 7. Interval scales indicate order and measure order in equal intervals.


297

F 8. Interval scales are unique because they possess an absolute zero point and equal
297 intervals between response positions.

T 9. The type of scale utilized in business research will determine the form of the statistical
298 analysis.

F 10. Grading on an A, B, C, D, and F scale is a ratio scale.


296

F 11. Because interval data can easily be transformed into ordinal data, the reverse process is
297 also true--ordinal data may be converted into interval data.
F 12. The location of a zero point in an interval scale is absolute.
297
Chapter 1 The Role of Business Research. 172

T 13. The concept "brand loyalty" can only be measured if it is made operational.
294

T 14. The operational definition specifies what the investigator must do to measure the
294 concept under investigation.

T 15. An operational definition gives a meaning to a concept by specifying the activities or


294 operations necessary to measure it.

F 16. In most behavioral research studies, the highest form of measurement is a nominal
297 scale.

F 17. The most sophisticated type of data analysis for a nominal scale is averaging.
296

T 18. When the outcome of the measuring process is reproducible, the measuring instrument
300 is reliable.

F 19. In a nominal scale, numbers have a quantitative meaning.


296

F 20. An interval scale may not be used as a nominal scale.


299

F 21. An interval scale may not be used as an ordinal scale.


299

T 22. Broadly defined, reliability is the degree to which measures are free from error and,
300 therefore, yield consistent results.
Chapter 1 The Role of Business Research. 173

T 23. There are two dimensions underlying the concept of reliability: repeatability and
300 internal consistency.

F 24. When the outcome of a measurement process is reproducible, the instrument is said to
301 be valid.

T 25. Face validity is also known as content validity.


302

T 26. Concurrent validity is a type of criterion validity.


303

T 27. Content validity refers to the subjective agreement among professionals that a scale
302 logically appears to be accurately reflecting what it purports to measure.

F 28. Validity is a necessary condition for reliability.


304

T 29. Reliability is a necessary, but not sufficient, condition for validity.


304

T 30. Validity addresses the problem of whether or not a measure does indeed measure what
301 it is supposed to measure.

T 31. Predictive validity is a type of criterion validity.


303

F 32. Predictive validity is a type of content validity.


303
Chapter 1 The Role of Business Research. 174

F 33. When similar results are obtained over time and across situations, the measuring
200 instrument is said to be valid.

F 34. The equivalent-forms method of measuring reliability assumes that the concept being
301 measured is unidimensional, but the split-half method of measuring reliability does not make this
assumption.

F 35. A reliable instrument is always valid.


304

F 36. “Does the instrument measure what it is supposed to measure?” is the central theme of
301 reliability.

F 37. A reliable, but invalid, instrument will yield consistently accurate results.
301

F 38. If a new measure is taken at the same time as the criterion measure, this is called
303 predictive validity.

F 39. When an attitude measure predicts a future event, this is known as concurrent validity.
303

F 40. Reliability is sufficient for establishing validity.


304

Multiple Choice Questions

B 1. When consumers are asked to rate each of several brands of toothpaste on a 5-point
Chapter 1 The Role of Business Research. 175

297 scale from poor to excellent, this is an example of which type of scale?
A. Nominal scale
B. Ordinal scale
C. Interval scale
D. Ratio scale

B 2. From the standpoint of the Bureau of Labor Statistics, the term "labor force" is a(n):
294 A. rule of measurement.
B. concept.
C. interval scale.
D. invalid attribute.

D 3. A company's Human Resources department distributes a survey which asks employees


297 to rate their current benefits as "excellent," "good," "fair," or "poor." This is an example of a(n):
A. nominal scale.
B. interval scale.
C. ratio scale.
D. ordinal scale.

D 4. The same survey also asks employees how happy they are with their current jobs. Job
299 satisfaction is measured by combining answers to several questions. This is an example of a(n):
A. nominal scale.
B. interval scale.
C. ratio scale.
D. index measure.

D 5. Which of the following is a possible measure of a salesperson’s performance?


294 A. Number of accounts lost in the past six months
B. Dollar sales
C. Unit sales
Chapter 1 The Role of Business Research. 176

D. All of the above

B 6. When similar results are obtained over time and across situations, this is a measure of:
300 A. validity.
B. reliability.
C. predictive accuracy.
D. biasness.

D 7. Which of the following is required for precise measurement in business research?


294 A. An operational definition of the concept being measured
B. A system of consistent rules for assigning numbers
C. A careful conceptual definition
D. All of the above

C 8. When a supervisor is asked to rate each of his subordinates on a 5-point scale where 1
297 (one) means that the worker is unsatisfactory and 5 means that the worker is exceptional, this is an
example of which type of scale?
A. Ratio scale
B. Interval scale
C. Ordinal scale
D. Nominal scale

C 9. The term refers to a measuring instrument's ability to accurately measure variability


304 in stimuli or responses.
A. validity
B. reliability
C. sensitivity
D. consistency
Chapter 1 The Role of Business Research. 177

B 10. When respondents are asked to rank-order their preferences for a new set of
297 automobile tires in terms of their three most likely brands to be selected, this is an example of which
type of scale?
A. Nominal scale
B. Ordinal scale
C. Ratio scale
D. Interval scale

D 11. “Dollars” represents which type of scale?


297 A. Nominal scale
B. Ordinal scale
C. Interval scale
D. Ratio scale

D 12. The concept "brand loyalty" may be operationalized as:


294 A. sequences of brands purchased.
B. number of different brands purchased.
C. amount of brand deliberation.
D. all of the above.

B 13. A(n) scale arranges objects or alternatives according to their magnitude in an


297 ordered relationship.
A. nominal
B. ordinal
C. interval
D. ratio
Chapter 1 The Role of Business Research. 178

D 14. Ratio scales have all of the properties of which type of scale?
297 A. Interval scale
B. Ordinal scale
C. Nominal scale
D. All of the above

A 15. The simplest type of measurement scale that uniquely classifies is:
296 A. a nominal scale.
B. an ordinal scale.
C. an interval scale.
D. a ratio scale.

D 16. A concept is a generalized idea about:


294 A. an occurrence.
B. a process.
C. an attribute.
D. all of the above

D 17. “Any series of items which is progressively arranged according to value or magnitude
296 into which an item can be placed according to its quantification” is the definition of:
A. a nominal scale.
B. face validity.
C. concurrent validity.
D. a scale.

A 18. “Census Tract 23” is an example of a(n):


296 A. nominal scale.
B. ordinal scale.
C. interval scale.
D. ratio scale.
Chapter 1 The Role of Business Research. 179

D 19. The type of measurement scale that has an absolute zero point is a(n):
297 A. nominal scale.
B. ordinal scale.
C. interval scale.
D. ratio scale.

A 20. Coding males as "0" and females as "1" is a(n) scale.


296 A. nominal
B. ordinal
C. interval
D. ratio

C 21. Which of the following statements about an interval scale is FALSE?


297 A. It has the properties of an ordinal scale.
B. It uniquely classifies by providing numbers that serve as labels for identification.
C. It has an absolute zero point.
D. It has the properties of a nominal scale.

A 22. In distribution research, miles or tons are often measures. These are:
297 A. ratio scales.
B. interval scales.
C. ordinal scales.
D. nominal scales.

A 23. When respondents are given a list of five toothpaste brands and are asked to rank-order
297 their preference, this is an example of which type of scale?
A. Ordinal scale
B. Nominal scale
C. Interval scale
D. Ratio scale
Chapter 1 The Role of Business Research. 180

D 24. The statement "our brand has a 20 percent market share," implies data.
297 A. nominal
B. ordinal
C. interval
D. ratio

B 25. "Hertz is #1 while Avis is #2" implies ____ data.


297 A. nominal
B. ordinal
C. interval
D. ratio
A 26. The mathematical and statistical analysis of measurement scales indicates that:
298 A. the most sophisticated form of analysis for nominal scales is counting.
B. if the researcher is analyzing ordinal data, the mean may be calculated.
C. if the researcher is analyzing ratio data, calculation of the mean is not a permissible operation.
D. all of the above.

B 27. Calculating the mean is permissable for _____ or _____ scales, but is not permissable
299 for _____ or _____ scales.
A. interval; nominal; ordinal; ratio
B. ratio; interval; nominal; ordinal
C. ordinal; interval; ratio; nominal
D. nominal; interval; ratio; ordinal

C 28. A bent ruler that consistently measures distance incorrectly (that is always wrong by
304 the same number of inches):
A. has validity and reliability.
B. has validity but not reliability.
C. has reliability but not validity.
Chapter 1 The Role of Business Research. 181

D. has neither validity nor reliability.

C 29. There are two dimensions underlying the concept of reliability; they are:
300 A. test and retest.
B. concurrent definition and predictive definition.
C. repeatability and internal consistency.
D. none of the above.

A 30. Administering the same instrument to the same respondents at two different times is a
300 measure of which type of reliability?
A. Test-retest.
B. Split-half method.
C. Content validation.
D. None of the above

D 31. All of the following are methods to estimate reliability EXCEPT:


300 A. equivalent-forms.
B. split-half method.
C. test-retest.
D. criterion ranking.

B 32. Asking managers to rate each of a set of five career opportunities on a scale from poor
297 to excellent is an example of which type of scale?
A. Nominal scale.
B. Ordinal scale
C. Ratio scale
D. Interval scale
Chapter 1 The Role of Business Research. 182

B 33. Validity of a measure of an attitude can be best described by the statement:


301 A. The attitude scale is reliable.
B. The attitude scale measures what it is supposed to measure.
C. The attitude scale has an absolute zero point.
D. The attitude scale is a logical and reasonable hypothetical construct.

B 34. When several experts say that a measure provides adequate coverage of the concept, a
302 measure has ___ validity.
A. concurrent
B. content
C. criterion
D. apparent

B 35. Content validity occurs when:


302 A. the measure correlates with other measures of the same concept.
B. there is subjective agreement among professionals that the measure logically appears to be
accurately reflecting what it purports to measure.
C. the content of the measure confirms a network of related hypotheses generated from a theory.
D. the measure is internally consistent.

D 36. If the empirical evidence is consistent with the theoretical logic about the concepts, we
303 have validity.
A. empirical
B. criterion
C. content
D. construct

D 37. A concept such as "social class" which is based on a weighted combination of


299 residence, occupation, and education is an example of:
Chapter 1 The Role of Business Research. 183

A. a concept involving a single attribute.


B. discriminant validity.
C. extreme sensitivity.
D. an index measure.

Fill in the Blank

1. A(n) _ ____ ____ is an instruction to guide assignment of a number or other


294 measurement designation.

rule of measurement

2. There are four types of scales: __, ____, ____, ____.


296
nominal, ordinal, interval, ratio

3. In the equivalent-form method, two alternative instruments are designed to be as as


301 possible.

equivalent

4. The simplest type of scale is a(n) scale.


296
nominal

5. The ability of a scale or measuring instrument to measure what is intended to be


302 measured is called .

validity
Chapter 1 The Role of Business Research. 184

6. We establish validity when an attitude measure predicts a future event.


303
predictive

7. The term refers to a measurement instrument's ability to acutely measure variability


304 in stimuli or responses.

sensitivity

8. A(n) gives meaning to a concept by specifying the activities or operations


294 necessary to measure it.

operational definition

9. The number 25 on a census tract is a(n) scale.


296
nominal

10. In a horse race, our horse comes in the "show" position, in third position behind the
297 "win" and "place" horses. This information indicates a(n) scale.

ordinal

11. The degree to which measures are free from error and, therefore, yield consistent
300 results is called .

reliability

12. There are two dimensions underlying the concept of reliability: __ and __ ____ .
Chapter 1 The Role of Business Research. 185

300
repeatability, internal consistency

13. The consumer price index where the base year is arbitrarily selected (hence, the
297 location of the zero point is arbitrary) is an example of a(n) scale.

interval

14. Physical distance from one distribution point to another in a logistical research study
297 indicates a(n) scale.

ratio

15. Any series of items which is progressively arranged according to value or magnitude
296 into which an item can be placed according to its quantification is known as a(n) _____.

scale

16. A(n) is a generalized idea about a class of objects, attributes, occurrences, or


294 processes.

concept

17. If we administer the same scale or measure to the same respondents at two separate
300 points in time, we are employing the - method.

test-retest

18. Census Tract 14 is an example of a(n) _____ scale.


296
Chapter 1 The Role of Business Research. 186

nominal
19. The term refers to subjective agreement among professionals that a scale
302 logically appears to accurately reflect what was intended to be measured.

content validity

20. The term refers to the ability of a measure to confirm a network of related
303 hypotheses generated from a theory based on the concepts.

construct validity

21. The term refers to the ability of some measure to correlate with other measures
302 of the same construct.

criterion validity

22. If a researcher takes the results obtained from the odd-numbered and checks them
301 against the results from the even-numbered items, the researcher is using the reliability method.

split-half

23. Money and weight are scales because they possess an absolute zero point and
297 interval properties.

ratio

Chapter 14
Attitude Measurement
Chapter 1 The Role of Business Research. 187

True-False Questions

F 1. All attitudes can be observed.


308

T 2. As a general rule, the Stapel scale is markedly easier to administer than the semantic
317 differential, especially over the phone.

F 3. Physiological measures are good measures of behavioral intentions.


309

F 4. A semantic differential uses numbers as response options to identify response


314 positions.

T 5. The behavioral differential is an instrument developed to measure the behavioral


321 intentions of subjects toward any object or category of objects.

F 6. A monadic rating scale asks a respondent to rate a concept, such as a brand, in


324 comparison with a benchmark, such as a competitive brand.

F 7. A simple attitude scale generates interval data.


310

F 8. Graphic rating scales are limited to straight lines as sources of visual communication.
318

F 9. An advantage of the Likert summated rating method is that it is easy to know what a
314 single summated score means.

F 10. A Stapel scale measures the direction, but not the intensity, of an attitude.
Chapter 1 The Role of Business Research. 188

317

F 11. One advantage of a graphic rating scale is that there are standard answers.
318

F 12. A monadic rating scale is a rating scale that uses verbal labels rather than numerical
324 labels.

F 13. Attitudes are measured directly.


323

F 14. Ranking provides interval data.


309

F 15. Seven response categories is the optimal number of response positions for a rating
324 scale.

T 16. An attitude is usually viewed as an enduring disposition to consistently respond in a


308 given manner to some aspect of the world.

F 17. One of the three components of an attitude is the sensitivity component.


308

F 18. The cognitive component of an attitude measures the respondent's predisposition to


308 action.

F 19. The statement "I hate cranberry juice" reflects the cognitive component of an attitude.
308

F 20. The statement "I am aware of Chrysler's warranty program" reflects the affective
Chapter 1 The Role of Business Research. 189

308 component of an attitude.

F 21. A comparative rating scale asks about a single concept.


324

F 22. A monadic rating scale asks the respondent to rate a brand compared to a competitive
324 brand.

F 23. The following scale is a Stapel scale item:


317
Products today are built to last a long time before needing service or repair.

strongly agree neither agree disagree strongly


agree nor disagree disagree

T 24. Attitudes are measured by inferring them based on the way a person responds to a
308 stimulus.

T 25. A Likert scale may include several items to form an index.


312

T 26. A disadvantage of the Likert-type summated rating method is that it is difficult to


314 know what a single summated score means.

T 27. A semantic differential is a measure of attitudes consisting of a series of rating scales


314 that use bipolar adjectives to anchor the beginning and ending of each scale.

T 28. The results of a semantic differential can be used to plot the median scores for each
314 item for one product and also for a competitive product on the same graph.
Chapter 1 The Role of Business Research. 190

T 29. Research comparing the semantic differential with the Stapel scale indicates that
317 results from the two techniques are largely the same.

T 30. In attitude measurement, direct verbal statements are used to measure behavioral
320 intent.

F 31. Attitudes may be measured directly by the use of focus groups in exploratory research.
323

T 32. A measurement task that identifies preferences by requiring respondents to choose


309 between two or more alternatives is simply called the choice technique.

T 33. Physiological measures of attitude provide a means of measuring attitudes without


309 verbally questioning the respondent.

F 34. A physiological measure of attitudes requires that the respondent rank order a small
309 number of items in overall preference or on the basis of some characteristic of the stimulus.

T 35. Pupil dilation is one way to measure attitude.


309

F 36. The following scale is a ladder scale:


318
The taste of 7-UP is:

Excellent Good Fair Poor

T 37. The most common way to measure attitudes in business research is through rating
310 scales.
Chapter 1 The Role of Business Research. 191

F 38. Simple attitude scales require the respondent to rate an opinion on a 5-point scale.
310

T 39. Most attitude theorists believe that the purpose of an attitude scale is to find an
311 individual's position on a continuum.

T 40. The following scale is a category scale:


311
The taste of 7-UP is:

Excellent Good Fair Poor

F 41. The following scale is a ladder scale:


318
Products today are built to last a long time before needing service or repair.

strongly agree neither agree disagree strongly


agree nor disagree disagree

F 42. The following question is an example of a semantic differential:


314
How important was climate in your decision to visit San Diego?

very fairly not so not at all


important important important important

F 43. The scale that appears below is an example of a Likert scale:


317
Chapter 1 The Role of Business Research. 192

Supervisor's Name
+3
+2
+1
Supportive
-1
-2
-3

T 44. The results of constant-sum scales approximate interval scales.


316

T 45. The constant-sum scale works best with respondents of higher educational levels.
316

F 46. A monadic rating scale cannot be a balanced scale.


325

T 47. Likert scales may range from three to nine alternatives.


312

T 48. A comparative rating scale asks a respondent to rate a concept, such as a brand, in
324 comparison with a benchmark, such as a competitive brand.

T 49. The following scale is a semantic differential scale:


314
Modern : : : : : : Old-fashioned

F 50. The following scale is a Likert scale:


Chapter 1 The Role of Business Research. 193

312
Modern : : : : : : Old-fashioned

T 51. The following scale is a graphic scale:


318
Modern ___________ Old-fashioned

F 52. The following scale is a ladder scale:


318
Modern : : : : : : Old-fashioned

F 53. Numerical scales measure the exact number of millimeters on a graphic continuum.
315

F 54. Numerical scales consist of rows and columns of numbers in a grid format.
315

T 55. Numerical scales often utilize bipolar adjectives in the same manner as semantic
315 differential scales.

F 56. The following item is a Stapel scale:


315
Divide 100 points among the following toothpaste characteristics according to how important each
characteristic is to you when selecting a brand of toothpaste:

cavity fighting
breath freshening
price
Chapter 1 The Role of Business Research. 194

F 57. The following scale is a semantic differential scale item:


314
Products today are built to last a long time before needing service or repair.

strongly agree neither agree disagree strongly


agree nor disagree disagree

T 58. The following scale is a Likert scale item:


312
Products today are built to last a long time before needing service or repair.

strongly agree neither agree disagree strongly


agree nor disagree disagree

T 59. A scale with categories such as strongly agree, mildly agree, mildly disagree and
311 strongly disagree is more sensitive than a scale that has dichotomous response categories such as agree
or disagree.

Multiple Choice Questions

B 1. When a student says: “I really liked that class,” this is an indicator of which
308 component of an attitude?
A. Cognitive
B. Affective
C. Behavioral
D. All of the above

C 2. An unbalanced rating scale is called "unbalanced" because:


325 A. the number of business researchers who are permitted to use this scale varies
Chapter 1 The Role of Business Research. 195

widely.
B. respondents frequently change their opinions about the scale categories.
C. the scale's positive categories do not equal the negative categories in number.
D. using such a scale throws research results "off balance," i.e., it distorts them.

C 3. When a student says: “I plan to take a marketing principles class next term,” this is an
308 indicator of which component of an attitude?
A. Cognitive
B. Affective
C. Behavioral
D. All of the above

B 4. Regarding constant-sum scales, which of the following statements is FALSE?


315 A. Constant-sum scales work best with respondents who have a higher
educational level.
B. They are a good example of a forced-choice scale.
C. Answers indicate the relative importance of certain attributes.
D. Respondents are asked to divide up a given number to indicate the relative importance of
attributes.

A 5. A monadic rating scale asks respondents about concept(s).


324 A. one
B. two
C. three or more
D. The number of concepts may range up to ten, if the scale has been well designed.

D 6. Which of the following is NOT a component of an attitude?


308 A. Affective
B. Cognitive
Chapter 1 The Role of Business Research. 196

C. Behavioral
D. Semantic

C 7. A hypothetical construct can be defined as:


308 A. the component of attitude that represents one's general feelings or emotions
toward an object.
B. a preliminary design for a major project.
C. a variable that is not directly observable but is measured by an indirect means, such as verbal
expression or overt behavior.
D. a strongly-felt attitude that anchors one end of a semantic differential scale.

D 8. An attitude:
308 A. is open to direct observation and measured by direct means.
B. is always measured by the rating method.
C. cannot be measured using physiological measures.
D. is always a hypothetical construct.

B 9. A measurement task that requires respondents to estimate the magnitude of a


309 characteristic or quality that a brand, store, or object possesses is a(n) _______ technique.
A. ranking
B. rating
C. sorting
D. choice

A 10. The following scale is best described as a ___ scale.


315
How satisfied are you with your IBM computer?

Extremely 7 6 5 4 3 2 1 Extremely
Chapter 1 The Role of Business Research. 197

Satisfied Dissatisfied

A. numerical
B. unbalanced
C. Likert
D. Stapel

D 11. A scale which will measure both the intensity and direction of attitudes is the _____
317 scale.
A. paired comparison
B. semantic differential
C. Likert
D. Stapel

D 12. Which of the following is a physiological measure of an attitude?


309 A. Blood pressure
B. Galvanic skin response (GSR)
C. Pupil dilation
D. All of the above

C 13. What type of scale is being used when a subordinate is asked:


311
How often is your manager helpful to you?

Rarely Sometimes Often Very Often

A. Likert scale
B. Semantic differential scale
C. Category scale
D. Thurstone scale
Chapter 1 The Role of Business Research. 198

A 14. A measurement task that requires respondents to rank order a small number of objects
309 in overall preference or on the basis of some characteristic of the stimulus is a(n) _____ scale.
A. ranking
B. rating
C. sorting
D. choice

C 15. A measurement technique that presents a respondent with information typed on cards
309 and requires the respondent to arrange the cards into piles is a(n) _____ technique.
A. ranking
B. rating
C. sorting
D. choice

C 16. Simple attitude scales


310 A. are four-point numerical scales.
B. have the properties of an interval scale.
C. merely classify respondents into one of two categories.
D. can only be used to measure the cognitive component.

A 17. The following scale is best described as a _____ scale.


311
The taste of 7-UP is:

Excellent Good Fair Poor

A. category
B. Likert
C. semantic differential
Chapter 1 The Role of Business Research. 199

D. Stapel

D 18. The following statements about a Likert scale are true EXCEPT:
312 A. scale items may be summated to form an index.
B. scores or weights are assigned to the alternative responses.
C. the scale is easy to administer.
D. respondents indicate their attitude by arranging items.

A 19. The following scale is best described as a _____ scale.


312
Products today are built to last a long time before needing service or repair.

strongly agree neither agree disagree strongly


agree nor disagree disagree

A. Likert
B. semantic differential
C. category
D. bipolar

A 20. The attitude scale that uses bipolar adjectives to anchor each end of the scale is the
314 _____ scale.
A. semantic differential
B. Stapel
C. Likert
D. constant-sum

A 21. Which of the following statements about attitude rating scales is TRUE?
Chapter 1 The Role of Business Research. 200

314 A. Researchers have found that respondents are often unwilling to use the
extremely negative side of semantic differential scales.
B. The major advantage of Likert-type summated rating scales is that the meaning of the single
summated score is easily interpreted.
C. The Stapel scale is more difficult to administer than a semantic differential scale over the
telephone.
D. The Thurstone scale's major advantage is the simplicity of its construction and administration.

B 22. In constructing a semantic differential scale:


314 A. midpoint descriptors are used.
B. bipolar adjectives are used.
C. (n-l)/2 comparisons must be made.
D. None of the above are used.

C 23. The following scale is best described as a _____ scale.


314
Modern : : : : : : Old-fashioned

A. Likert
B. numerical
C. semantic differential
D. Stapel

D 24. All of the following statements about semantic differential scales are true EXCEPT:
314 A. the semantic differential is actually a series of attitude scales.
B. the semantic differential uses bipolar adjectives to anchor the beginning and ending of the
scale.
C. the weights assigned to the semantic differential are arbitrary.
D. the semantic differential uses numbers as response options to identify categories.
Chapter 1 The Role of Business Research. 201

A 25. What type of scale is being used when a manager is asked:


312
MBO provides an effective way to evaluate my work performance.

Strongly Strongly
Agree AgreeNeutral DisagreeDisagree

A. Likert
B. Semantic differential
C. Numerical
D. Unbalanced

D 26. What type of scale is being used in the following item?


315
Please tell us how satisfied you are with your purchase of your Ford Escort.

Very Very
Satisfied 7 6 5 4 3 2 1 Dissatisfied

A. Likert
B. Semantic differential
C. Comparative rating
D. Numerical

D 27. When a rating scale presents the "ideal situation" as a reference point for a comparison
324 with an actual situation, the rating scale is a(n):
A. reference scale.
Chapter 1 The Role of Business Research. 202

B. ladder scale.
C. monadic scale.
D. comparative scale.

A 28. The scale that appears below is a scale:


317
Supervisor's Name
+3
+2
+1
Helpful
-1
-2
-3

A. Stapel
B. semantic differential
Chapter 1 The Role of Business Research. 203

C. constant-sum
D. sorting technique

B 29. The following scale is best described as a(n) ____ scale.


325
How satisfied are you with the bookstore in the student union?

Satisfied
Neither satisfied nor dissatisfied
Quite dissatisfied
Very dissatisfied

A. numerical.
B. unbalanced.
C. nominal.
D. comparative.

B 30. A forced choice scale:


325 A. must contain an odd number of categories.
B. does not provide a neutral category.
C. does not allow for an unbalanced design.
D. must be comparative.
Chapter 1 The Role of Business Research. 204

C 31. If FedEx asks businesses to distribute 100 points among the following, what type of
315 scale is being used:

_____ Correct invoicing


_____ On-time delivery
_____ Price

A. Forced choice
B. Likert
C. Constant sum
D. Semantic differential

C 32. What type of scale is being used when a company asks its managers to distribute their
315 benefits so that they add up to 50 points using the following scale:

____ Dental plan


____ Retirement plan
____ Health care plan
____ Child care plan

A. Likert scale
B. Semantic differential scale
C. Constant sum scale
D. Ranking scale

Fill in the Blank

1. The __ component of an attitude reflects buying intentions and a predisposition to


Chapter 1 The Role of Business Research. 205

308 take certain actions.

behavioral

2. The __ component of an attitude reflects an individual's general feelings or


308 emotions toward an object.

affective

3. The __ component of an attitude reflects one's awareness of and knowledge about


308 an object.

cognitive

4. The term __ ______ describes a variable that is not directly observable but is
308 measured by an indirect means, such as verbal expression or overt behavior.

hypothetical construct

5. The technique is a measurement task that requires respondents to choose one of


309 two or more alternatives.

choice

6. The ____ is an instrument developed to measure the behavioral intentions of


321 respondents toward any object or category of objects.

behavioral differential

7. A(n) is an enduring disposition to consistently respond in a given manner to


Chapter 1 The Role of Business Research. 206

308 various aspects of the world.

attitude

8. The following question is an example of the __ _____ measurement technique.


322
I would like to know your overall opinion of two brands of Product X. They are Brand A and Brand B.
Overall, which of these two brands--A or B--do you think is the better one? Or are both the same?

A is better .
B is better .
They are the same .

paired comparison

9. _____ _____ is a physiological measure of attitude.


309
Galvanic skin response or blood pressure or pupil dilation

10. The term describes a measurement task that requires respondents to estimate the
309 magnitude of a characteristic or quality that an object possesses.

rating

11. The term describes a measurement task that requires respondents to order a small
309 number of activities, events, or objects according to overall preference or on the basis of some
characteristic of the stimulus.
Chapter 1 The Role of Business Research. 207

ranking

12. A measure of attitudes that asks respondents about a single concept in isolation is
324 known as a(n) rating scale.

monadic

13. A fixed-alternative rating scale that has more response categories at one end of the
325 scale, so that the number of positive categories does not equal the number of negative categories, is a(n)
rating scale.

unbalanced

14. A measure of attitudes that asks respondents to rate a concept against a benchmark
324 explicitly used as a frame of reference is a(n) rating scale.

comparative

15. A fixed-alternative rating scale that has an equal number of positive and negative
325 categories, with a neutral or indifference point at the center of the scale, is known as a(n) rating
scale.

balanced

16. The scale that appears below is a(n) scale:


311
How often do you disagree with your spouse about how much to spend on various things?

Never Rarely Sometimes Often Very Often

category
Chapter 1 The Role of Business Research. 208

17. The scale that appears below is an example of a(n) scale:


312
I carefully budget my food expenditures.

Strongly Disagree Uncertain Agree Strongly


Disagree Agree

Likert

18. The _ ____ scale is an attitude measurement technique consisting of a series of


314 seven-point bipolar rating scales allowing response to a concept.

semantic differential

19. A(n) __ _____ _____ is a measure of attitude consisting of a continuum;


318 respondents are asked to rate an object by choosing any point on the continuum.

graphic rating scale

20. The name for the scale that appears below is a(n) scale:
315
Chapter 1 The Role of Business Research. 209

Divide 100 points among the following toothpaste characteristics according to how important each
characteristic is to you in selecting a brand of toothpaste:

Cavity fighting
Breath freshening
Price

constant-sum

21. The technique presents respondents with several concepts and asks them to arrange
309 or otherwise classify the concepts.

sorting

22. In its most basic form, attitude scaling requires respondents to or with a
310 statement.

agree; disagree

23. A(n) __ scale uses numbers as response options to identify response positions.
315
numerical

Chapter 15
Questionnaire Design

True-False Questions

F 1. Researchers can assume that a Spanish-language questionnaire will be equally


Chapter 1 The Role of Business Research. 210

361 understandable in all Spanish-speaking countries.

T 2. As a general rule, mail and telephone surveys should be less complex than those used
335 in personal interviews.

T 3. The physical appearance of a questionnaire can affect the response rate.


348

F 4. Common sense and good grammar are all that are required in writing a questionnaire.
330

T 5. Each question on a questionnaire should have its own rationale for being included in
331 the questionnaire.

F 6. Although questionnaire layout is of crucial importance in self-administered


348 questionnaires, good layout is of little importance in telephone and personal interviews.

T 7. A researcher should think about possible omissions to the questions when planning a
331 questionnaire.

T 8. Open-ended questions are free-answer questions.


332

T 9. Back translation refers to the process of translating a questionnaire into another


361 language and then back into the original language to discover inconsistencies.

F 10. As a general rule, improvements in sampling contribute far more to accuracy than
329 improvements in wording of questions.

F 11. The means of data collection should not be allowed to influence the format or phrasing
Chapter 1 The Role of Business Research. 211

331 of a questionnaire.

F 12. A question that leads into a longer query is known as a leading question.
336

F 13. Since the media have popularized U.S. culture worldwide, researchers do not need to
361 allow for cultural differences when designing questionnaires for foreign markets.

T 14. Concepts such as "uncle" and "aunt" can have different meanings in different cultures.
361

T 15. A survey is only as good as the questions it asks.


330

F 16. A double-barreled question is one that is both leading and loaded.


341

T 17. It is generally good advice to postpone personal questions until the middle or end of
344 the questionnaire.

T 18. The order of closed questions can affect the survey results.
344

T 19. The pretesting process allows the researcher to determine if the respondents have any
359 difficulty understanding instructions on the questionnaire or if there are any ambiguous or biased
questions.

T 20. Managers inexperienced at business research frequently believe constructing a


330 questionnaire is a simple task.
Chapter 1 The Role of Business Research. 212

T 21. When a NEXT label appears at the bottom of an Internet page, this is an example of a
354 “push button.”

T 22. Relevance and accuracy are the two basic criteria to be met if a questionnaire is to
330 achieve the researcher's purpose.

T 23. A questionnaire is relevant if no unnecessary information is collected and if only the


331 information needed to solve the problem is obtained.

T 24. Questionnaire wording and question sequence substantially influence questionnaire


331 accuracy.

T 25. When an Internet user clicks on a box labeled PRIVACY STATEMENT to read the
356 company’s policy on personal information that he provides, this is known as a “pop-up box.”

F 26. Asking a respondent "how often" a product is used generally produces an estimate of
338 average behavior rather than an estimate of "ideal" behavior.

T 27. When framing response alternatives to multiple choice questions, the alternatives must
334 be mutually exclusive.

F 28. Likert-scale items are an example of open-ended questions.


332

T 29. The answer to a question is frequently a function of the question's wording.


329

F 30. The two basic types of questions are open-ended response questions and free response
331 questions.
Chapter 1 The Role of Business Research. 213

F 31. Contrasted with open-ended questions, fixed-alternative questions are easier to answer,
332 require less time by respondents, and rely more on interviewer skills.

T 32. When a researcher is aware of the potential responses to a question, fixed-alternative


332 questions should be used.

F 33. Multiple-choice alternatives should have an overlap among categories.


334

F 34. Dichotomous questions are free-answered questions that pose some problem or topic
332 and ask the respondent to answer in his own words.

F 35. The cost of coding and analyzing fixed-alternative data is considerably more expensive
332 than the cost of coding and analyzing open-ended response questions.

F 36. Double-barreled questions should be included in questionnaires.


341

F 37. When respondents think that recent events occurred longer ago than they really did
344 occur, this is known as telescoping.

T 38. When an Internet user types his answer to an open-ended question into a box on his
356 computer screen, this is known as an “open-ended box.”

F 39. An open-ended question requires a respondent to choose one (and only one) response
332 from among multiple choice alternatives.

F 40. When respondents believe that past events happened more recently than they actually
344 did happen, this is known as squishing.
F 41. The funnel technique starts with specific questions and proceeds to general questions.
Chapter 1 The Role of Business Research. 214

345

T 42. When an interviewer asks the next question based on the interviewee’s response to:
346 “Have you ever owned your own home?”, this is an example of a “pivot question.”

F 43. It is very important to obtain a statistical sample for the pretesting of a questionnaire.
359

T 44. Pretesting a survey can help to estimate the likely response rate of the final survey.
359

T 45. The first layout question about an Internet questionnaire is whether or not the
354 questionnaire will appear page-by-page on a scrolling basis with the entire questionnaire appearing on
one screen.

T 46. The paging layout format on an Internet questionnaire going from screen-to-screen
354 greatly facilitates skip patterns.

T 47. In an Internet survey, a radio button at the beginning of the question format would be
356 appropriate for a Likert scale with the response categories strongly agree, agree, disagree, and strongly
disagree.

F 48. Check box questions require respondents to use their keyboards to enter text for open-
356 ended questions.

F 49. A radio button is a message box that can be used to provide highlighted information.
356

F 50. Variable piping software may put a message in a pop-up box instructing the respondent
357 to adjust his or her answer.
Chapter 1 The Role of Business Research. 215

Multiple Choice Questions

C 1. Which of the following is TRUE?


330 A. Researchers can assume that all respondents will understand survey questions.
B. Researchers can assume that everyone will be equally willing to answer personal questions.
C. Questionnaire design often takes longer than expected.
D. If a sample has been properly chosen, designing the questionnaire will be easy.

D 2. _ and _ are the two basic criteria to be met if a questionnaire is to achieve the
330 researcher's purpose.
A. Sensitivity, political correctness
B. Reliability, validity
C. Relevance, thoroughness
D. Relevance, accuracy

A 3. Which of the following is FALSE?


344 A. Expert researchers "warm up" respondents by starting off with questions
about income and educational level.
B. Questions about educational level may embarrass respondents.
C. Generally, potentially embarrassing questions should be asked at the middle or end of a
questionnaire.
D. Asking easy-to-answer questions first helps build respondents' confidence.

D 4. Which of the following is an important question to answer in questionnaire design?


330 A. How should the questionnaire be pretested?
B. What should be asked?
C. In what sequence should the questions be asked?
D. All of the above.
D 5. What type of question is the following:
Chapter 1 The Role of Business Research. 216

332
Name four brands of automobile tires that you would consider purchasing if you were
in the market for a new set of tires for your car?

A. Leading question
B. Loaded question
C. Fixed-alternative question
D. Open-ended question

C 6. What type of question is the following:


332
I’m going to show you a sample magazine advertisement. What does this ad mean to you?

A. Double-barreled
B. Fixed-alternative
C. Open-ended
D. Leading

A 7. The process of translating a questionnaire into another language and then back into the
361 original language to discover inconsistencies is called:
A. back translation.
B. counter-translation.
C. linguistic analysis.
D. pivot translation.

D 8. When respondents believe that past events happened more recently than they actually
Chapter 1 The Role of Business Research. 217

344 did, this is called .


A. squishing.
B. funnel technique.
C. frequency determination.
D. telescoping.

A 9. When respondents believe that recent events took place longer ago than they actually
344 did, this is called:
A. squishing.
B. funnel technique.
C. frequency determination.
D. telescoping.

D 10. Consider the following question:


334
"If you own your own home, what is its approximate value?"

Under $50,000
$50,000 - $70,000
$70,000 - $100,000
$100,000 - $150,000

Which of the following is NOT a valid criticism?

A. Categories are not mutually exclusive.


B. List of alternatives is not collectively exhaustive.
C. Two questions are being asked as one.
D. All are valid criticisms.
Chapter 1 The Role of Business Research. 218

D 11. What type of question is the following:


332
Do other managers in your organization feel that there is a useful distinction to be made between
what is legal and what is ethical? ____ yes ____ no

A. Loaded
B. Leading
C. Open-ended
D. Fixed-alternative

B 12. The following question:


343
Should Lord & Taylor continue its excellent gift wrapping program?

____Yes ____ No

A. is a double-barreled question.
B. has a built-in assumption.
C. is a counterbiasing statement.
D. all of the above.

C 13. Which statement about the questionnaire design stage is FALSE?


330 A. Improving the wording of the questionnaire can sometimes contribute far
more to improvements than can improvements in sampling.
Chapter 1 The Role of Business Research. 219

B. Questions that differ only by a single word can yield large differences in responses.
C. Common sense and good grammar are all one needs to construct a questionnaire.
D. People may simply not understand what is being asked.

B 14. A questionnaire is said to be if no unnecessary information is collected and if the


331 information needed to solve the business problem is obtained.
A. complete
B. relevant
C. finished
D. correct

C 15. The type of question most beneficial when a researcher is conducting exploratory
332 research is:
A. true-false.
B. multiple choice.
C. open-ended.
D. closed.

A 16. What type of question is the following?


341
Did you make any local or long-distance calls from your home last week?

____ yes ____ no

A. Double-barreled
B. Leading
C. Loaded
D. Funnel

A 17. Open-ended questions:


Chapter 1 The Role of Business Research. 220

332 A. make good introductory questions during an interview.


B. limit the range of choices available to respondents.
C. increase interviewer bias.
D. require little respondent effort.

C 18. Open-ended response questions:


332 A. require less interviewer skill.
B. take less time to answer than fixed-alternative questions.
C. ask the respondent to answer in his own words.
D. all of the above.

C 19. What type of question is the following?


341
Do you agree or disagree with this statement: “The recession is caused by inflation and unemployment.”

A. Leading
B. Misleading
C. Double-barreled
D. Checklist

A 20. What type of question is the following?


341
How many times during the past two months have you called in sick for work or played golf during a
weekday?
.
A. Double-barreled
B. Forced choice
C. Open-ended
D. Fixed-alternative
Chapter 1 The Role of Business Research. 221

B 21. When using attitude scales, the first concept measured often tends to become a
345 comparison point with which subsequent concept evaluations are made. This is an example of:
A. first box concept.
B. an anchoring effect.
C. a loaded question.
D. attitude bias.

B 22. Which type of question is the following?


346
Have you ever had a problem cashing a check at our supermarket?

_____ Yes_____ No

A. Leading
B. Filter
C. Loading
D. Double-barreled

C 23. The split-ballot technique can be defined as:


339 A. dividing respondents into two groups, according to whether their responses
are positive or negative.
B. designing a questionnaire so that half of the questions are leading and the other half are
loaded.
C. using two alternative phrasings of the same question for respective halves of the sample.
D. requiring respondents to choose one of two dichotomous alternatives.

D 24. Structuring the order of the questions on a survey is done to:


344 A. insure respondents' cooperation.
B. eliminate respondent confusion.
Chapter 1 The Role of Business Research. 222

C. aid respondents' memory.


D. all of the above.

B 25. When a qualifying question is utilized to determine what subsequent question or


346 questions will be asked, it is referred to as a:
A. primary question.
B pivot question.
C. multivariate question.
D. none of the above.

B 26. When using the Internet, if you need to click beside either a “Yes” or a “No” response
356 to fill in the circle that is next to one of these choices to indicate your answer to the question, this type of
prompt is called:
A. a split-ballot prompt.
B. a radio button.
C. a check list button.
D. a complex choice button.

B 27. Which type of question is the following?


331
Describe your feelings about our customer service when you recently rented a car from Avis.

A. fixed-alternative
B. open-ended
C. double-barelled
D. forced-choice
Chapter 1 The Role of Business Research. 223

D 28. In terms of preventing order bias in questions, it is usually better to ask ____ questions
345 ____ (before/after) ____ questions if the researcher plans to use the funnel technique.

A. general; after; specific


B. specific; before; general
C. general; after; open-ended
D. general; before; specific

D 29. Which of the following is a common error in questionnaire design?


330 A. Assuming that the question means the same thing to all respondents
B. Assuming that the respondent knows the answer to the question
C. Assuming that the respondent is familiar with the product under study
D. All of the above.

B 30. In developing a questionnaire, which of the following is NOT a useful guideline:


341 A. avoid loaded questions.
B. be as general as possible.
C. avoid double-barreled items.
D. use simple, conversational language.

B 31. A(n) question suggests or implies a certain response.


336 A. loaded
B. leading
C. complex
D. ambiguous

Fill in the Blank

1. If a researcher creates two alternative phrasings of the same question and uses them for
339 respective halves of the sample, the researcher is using the technique.
Chapter 1 The Role of Business Research. 224

split-ballot

2. A survey question is _______ if no unnecessary information is collected.


331
relevant

3. A survey question is _______ if it asks for information that is necessary to solve the
331 business problem under study.

relevant

4. _____ questions are especially useful in exploratory research studies.


332
Open-ended

5. When the information collected on a survey is reliable and valid, we say that the survey
331 is ________ .

accurate

6. Both question _______ and question _______ influence the accuracy of a survey.
331
wording; sequence

7. If respondents are influenced by earlier questions in a questionnaire, the questionnaire


344 suffers from .

order bias
Chapter 1 The Role of Business Research. 225

8. Words such as often, occasionally, usually, regularly, frequently, many, good, fair, and
339 poor are not excellent ones for questionnaires because they are .

ambiguous

9. When there are multiple choice alternatives, each alternative should be ---that is,
334 only one dimension of an issue should be related to that alternative.

mutually exclusive
10. In developing a questionnaire, there (are/are no) hard and fast rules.
336
are no

11. The question that appears below is an example of a(n) statement:


336
Many people are using dry-cleaning less because of improved wash-and-wear clothes. How do you feel
wash-and-wear clothes have affected your use of dry-cleaning facilities in the past four years?

Use Less No Change Use More

leading

12. The question that appears below is an example of a(n) statement:


336
Would you favor or oppose changing the Constitution in order to prevent a president from succeeding
himself more than once?

loaded

13. A researcher asks general questions first, then asks specific questions in order to obtain
345 unbiased responses. This is an example of the .
Chapter 1 The Role of Business Research. 226

funnel technique

14. A researcher asks a question that screens out respondents who are not qualified to
346 answer a second question. This is an example of a(n) .

filter question

15. The process of translating a questionnaire into another language and then back into the
361 original language to discover inconsistencies is called .

back translation

16. A researcher asks a question to determine which version of a second question should
346 be asked. This is an example of a(n) .

pivot question

17. The two basic criteria to be met if the questionnaire is to achieve the researchers'
330 purposes are and .

relevance, accuracy

18. The term - response questions describes those that pose some problem or topic
332 and ask the respondent to answer in his own words.

open-ended
Chapter 1 The Role of Business Research. 227

19. When the researcher is conducting exploratory research, and if the range and responses
332 are not known, - response questions are most beneficial.

open-ended

20. One survey asks respondents to agree or disagree with this statement: "I have called in
341 sick or left work to play golf." This is an example of a(n) - question.

double-barreled

21. The two basic types of questions, based on the amount of freedom respondents are
331 given in answering questions, are: - and - .

open-ended; fixed-alternative response

22. Tabulation of the results of a pretest is called ___ _____ .


359
preliminary tabulation

Chapter 16
Sample Designs and Sampling Procedures

True-False Questions

T 1. The definition of a sampling unit, such as a member of a household, may not be a


378 straightforward task.

F 2. A census is a study of the majority of individual elements that comprise the population.
Chapter 1 The Role of Business Research. 228

369

F 3. If the elements of a population are quite similar, a large sample is necessary to portray
369 the characteristic of interest.

F 4. In a census of a large population, there is less likelihood of nonsampling errors than


370 there is when the population is small in size.

T 5. In probability sampling, every population element has a known nonzero chance of


381 being selected.

T 6. Convenience sampling refers to the sampling procedure of obtaining people who are
381 most conveniently available.

F 7. The first step in sampling is to determine the sample size.


373

T 8. Judgment sampling is often used in attempts to forecast election results.


382

F 9. As sample size increases, sampling error increases.


379

F 10. Systematic errors are due to chance fluctuations.


379

T 11. The purpose of a quota sample is to ensure that the various subgroups in a population
383 are represented on pertinent sample characteristics to the exact extent that the investigator desires.
F 12. Quota sampling is a probability sampling procedure.
383
Chapter 1 The Role of Business Research. 229

T 13. Speed of data collection, lower costs, and convenience are the major advantages of
384 quota sampling.

T 14. A number of theoretical laboratory experiments rely on nonprobability sampling


384 because it is difficult to find a sample of the general population willing to visit a laboratory for an
experiment.

F 15. In nonprobability sampling, every element in the population has a known nonzero
381 probability of selection.

T 16. The process of sampling involves any procedure using parts of the whole population to
369 draw conclusions regarding the whole population.

T 17. A sample is a subset of a population.


369

F 18. The best known type of probability sample is the convenience sample.
381

F 19. Selecting a university on the basis of a visit to one professor's lecture is a scientific
368 sample.

F 20. In probability sampling, the probability of a member of the population being selected is
381 unknown..

T 21. When the population elements are highly homogeneous, samples are typically highly
369 representative of the population.

F 22. A census is a subset of a population.


Chapter 1 The Role of Business Research. 230

369

F 23. When the size of the population is large, a properly constructed census is usually more
370 accurate than a sample.

T 24. The Bureau of the Census uses samples to check the accuracy of the United States
370 Census.

F 25. There are appropriate statistical techniques for measuring random sampling error in a
381 nonprobability sample.

T 26. A sampling frame is the list of elements from which the sample may be drawn.
373

F 27. In nonprobability sampling, it is appropriate to project the data beyond the sample.
381

T 28. Using a random digit dialing sample of adults with telephones may result in a sampling
376 frame error if the target group consists of registered voters.

F 29. In a convenience sample, it is appropriate to project the results beyond the sample.
381

T 30. A single element or group of elements subject to selection in the sample is a sampling
377 unit.

T 31. The term primary sampling units is used to designate units selected in the first stage of
377 sampling.

F 32. Convenience samples are most appropriate for causal research studies.
Chapter 1 The Role of Business Research. 231

381

F 33. Placing names on cards in a hat and selecting sample elements from this hat is an
384 example of convenience sampling.

F 34. The process of selecting sampling units within the stratum is the same for both
386 stratified and quota sampling.

F 35. No probability samples are based on chance selection procedures.


381

F 36. The term “random” describes the data in a probability sample.


384

F 37. In quota sampling, a subsample is drawn using a simple random sample within each
383 stratum.

F 38. The most popular type of cluster sample is the stratified random sample.
389

T 39. Cluster samples are frequently utilized when no list of the sample population is
389 available.

T 40. Ideally the cluster in cluster sampling is a mirror image of the population.
389

F 41. In a cluster sample that samples airline flights and then selects passengers as
377 respondents to a survey, the passengers are primary sampling units.
Chapter 1 The Role of Business Research. 232

T 42. The purpose of sampling is to estimate an unknown characteristic of the population.


369

T 43. Snowball sampling is a sampling procedure in which initial respondents are selected by
384 probability methods, and then additional respondents are obtained from information provided by initial
respondents.

F 44. When the population elements are highly heterogeneous, samples are highly
369 representative of the population.

T 45. In a simple random sample, each member of the population has an equal probability of
384 being selected.

T 46. A sample can be more accurate than a census.


370

T 47. The Internet has some unique problems associated with sampling.
394

T 48. The fact that Internet surveys can reach a large number of people quickly is both an
395 advantage and a disadvantage.

T 49. One reason for taking a sample rather than a census is that, if properly selected,
370 samples are, in most cases, sufficiently accurate.

T 50. The fact that many people in the United States do not have access to the Internet is a
395 major disadvantage of Internet sampling.

F 51. The sampling frame is rarely different from the target population that has been defined.
373
Chapter 1 The Role of Business Research. 233

T 52. Another term for the sampling frame is the working population.
373

T 53. Non-response error may cause the sample to be less than perfectly representative
381 because the actual sample is drawn from a population different from or smaller than the ideal population.
T 54. It is possible for population elements to be overrepresented in a sampling frame.
376

T 55. There are two major alternative sampling plans: probability techniques and
381 nonprobability techniques.

T 56. There are no appropriate statistical techniques to measure random sampling error from
381 a nonprobability sample.

T 57. Random sampling error is a function of sample size.


379

T 58. An internet sample is a type of convenience sample.


395

T 59. In stratified sampling, a subsample is drawn within each stratum using a simple
386 random sample technique..

T 60. The dollar costs of sampling very tremendously with different sampling techniques.
394

T 61. In sampling, cost savings may be a useful trade-off for a reduction in accuracy.
391
Chapter 1 The Role of Business Research. 234

T 62. When a time deadline is important, researchers are more likely to use a simple sample
394 design.

T 63. At the outset of the sampling process, it is important to define the target population
373 carefully.

F 64. A survey to evaluate how visitors feel about a Web site that samples everyone who
395 visits a Web page is better than randomly selecting every 100th visitor.

T 65. Because Internet surveys can be accessed anytime (24/7) from anywhere, they can
395 reach certain hard-to-reach respondents, such as doctors.

T 66. Drawing a probability sample from an established consumer panel or other pre-
396 recruited membership panel is a popular, scientific, and effective method for drawing Internet samples.

F 67. In an Internet survey, creating an e-mail addresses sampling frame on an ad hoc basis
397 is inappropriate.

F 68. When a potential respondent gives permission to receive selective e-mails that include
397 Internet questionnaires, that person is said to be unrestricted.

Multiple Choice Questions

D 1. A list of the members of the American Marketing Association is an example of a(n):


373 A. sampling interval.
B. quota sample.
C. systematic sample.
D. sampling frame.
Chapter 1 The Role of Business Research. 235

B 2. Quota sampling:
383 A. involves taking a stratified sample in which the number of sampling units
drawn from each stratum is in proportion to the relative population size of that
stratum.
B. ensures that certain characteristics of a population sample will be represented to the exact
extent that the researcher desires.
C. obtains units or people who are most conveniently available.
D. selects an initial starting point by a random process, and then selects every nth number on the
list.

B 3. The acronym "PSU" stands for:


377 A. previous sampling unit.
B. primary sampling unit.
C. proportional stratified universe.
D. population sample unit.

C 4. Secondary sampling units are:


377 A. units selected during preliminary stages of testing.
B. units that are weeded out due to random sampling error.
C. units selected in the second stage of sampling.
D. samples that consist of inanimate objects only, rather than people.

B 5. A reverse directory:
375 A. starts with "Z" and ends with "A."
B. provides, in a different format, the same information as a telephone directory.
C. starts each listing with the zip code, which would be the last item listed in a standard
telephone directory.
D. alphabetizes households according to first name, unlike a standard telephone directory.

B 6. Which of the following is NOT an advantage of quota sampling?


Chapter 1 The Role of Business Research. 236

384 A. Data can be collected quickly


B. Interviewers tend to interview people similar to themselves
C. Costs tend to be lower
D. It tends to be convenient

D 7. Systematic sampling:
386 A. involves taking a stratified sample in which the number of sampling units
drawn from each stratum is in proportion to the relative population size of that stratum.
B. ensures that certain characteristics of a population sample will be represented to the exact
extent that the researcher desires.
C. obtains units or people who are most conveniently available.
D. selects an initial starting point by a random process, and then selects every nth number on the
list.

B 8. The term describes a problem in systematic sampling due to a systematic pattern in


386 the original list of items.
A. synchronicity
B. periodicity
C. nonsynchronous sampling
D. sampling frame error

B 9. Judgment sampling:
382 A. assures each element in the population an equal chance of being included in
the sample.
B. is a technique in which an experienced researcher selects the sample based upon some
appropriate characteristic of the sample members.
C. draws subsamples from samples within different strata that are more or less equal on some
characteristic.
D. is an economically efficient technique in which the primary sampling unit is not the
individual element in the population, but a large cluster of elements.

C 10. The most popular type of cluster sample is:


Chapter 1 The Role of Business Research. 237

389 A. the optimal allocation stratified sample.


B. the periodicity cluster.
C. the area sample.
D. the systematic sample.

D 11. When individuals selected for participation in a shopping mall intercept study refuse to
381 participate in an interview, this is an example of:
A. nonprobability sampling.
B. a reverse directory.
C. periodicity.
D. nonresponse error.

B 12. A disproportional stratified sample:


388 A. involves taking a stratified sample in which the number of sampling units
drawn from each stratum is in proportion to the relative population size of that stratum.
B. is a stratified sample in which the sample size for each stratum is allocated according to
analytical considerations.
C. obtains units or people who are most conveniently available.
D. selects an initial starting point by a random process, and then selects every nth number on the
list.

A 13. There are no appropriate statistical techniques for measuring random sampling error
381 from:
A. a nonprobability sample.
B. a simple random sample.
C. a stratified sample.
D. all of the above.
Chapter 1 The Role of Business Research. 238

B 14. A researcher divides the population of product users into three groups based on degree
386 of use. If the researcher then draws a random sample from each user group independently, the researcher
has created a ____ sample.
A. simple random
B. stratified
C. judgment
D. quota

A 15. Stratified samples may be distinguished from quota samples because with a stratified
386 sample, sample elements are selected:
A. randomly.
B. judgmentally.
C. proportionately.
D. sequentially.

D 16. If a researcher wishing to draw a sample from sequentially numbered invoices uses a
386 random starting point, then draws every 50th invoice, the researcher has drawn a sample.
A. simple random
B. sequential
C. stratified
D. systematic

B 17. When a sampling frame has a systematic pattern in the listing of sampling units, rather
386 than a random pattern,
A. a systematic sample must be drawn.
Chapter 1 The Role of Business Research. 239

B. the problem of periodicity exists.


C. a random error occurs.
D. a proportional sample must be used.

B 18. Systematic error is:


379 A. the difference between the sample results and the results of a census using
identical procedures.
B. error resulting primarily from the nature of a study's design or the correctness of the execution
of that design.
C. error that occurs when certain sample elements are not listed or available and are not
represented in the sampling frame.
D. error that occurs as a result of using a reverse directory.

B 19. A researcher wishes to test a new product flavor by drawing a probability sample so
388 that the proportion of persons in each income bracket and ethnic group selected is the same as the whole
population. This is an example of a sample.
A. proportional systematic
B. proportional stratified
C. proportional cluster
D. proportional random

C 20. When the primary sampling unit is not the individual element in the population but a
389 large cluster of elements, a sampling technique is used.
A. secondary
B. tertiary
C. cluster
D. stratified
Chapter 1 The Role of Business Research. 240

D 21. A researcher in Missouri first selects counties in the state using a random process.
390 Then, the researcher selects census tracts within these counties by using a random process. Finally, the
researcher randomly selects individuals within these census tracts using voter registration lists. This is
a(n):
A. hierarchical sample.
B. simple random sample.
C. systematic sample.
D. multistage area sample.

D 22. Which of the following statements is FALSE?


389 A. A researcher using cluster sampling does not need a list of all individuals
(sampling units.)
B. In cluster sampling, the primary sampling unit is a cluster of population elements.
C. An area sample is a cluster sample.
D. Travel costs are increased in cluster sampling because the time spent traveling is substantially
greater than the time spent interviewing.

C 23. Using Web site visitors for Internet surveys is an example of a(n):
395 A. stratified random sample.
B. multistage area sample.
C. convenience sample.
D. systematic sample.

A 24. When a researcher selects Kansas City as a test marketing city for a new brand of
382 laundry detergent, this is an example of a(n):
A. judgment sample.
B. convenience sample.
C. stratified random sample.
D. systematic sample.
Chapter 1 The Role of Business Research. 241

A 25. The term "snowball sampling" refers to:


384 A. a sampling procedure in which initial respondents are selected by probability
methods, and then additional respondents are obtained from information provided by the
initial respondents.
B. a sampling procedure in which respondents are grouped into successively larger clusters.
C. a sampling procedure in which respondents are completely unknown to each other.
D. none of the above.

D 26. Convenience sampling:


381 A. involves taking a stratified sample in which the number of sampling units
drawn from each stratum is in proportion to the relative population size of that stratum.
B. is sampling that involves using a combination of other sampling techniques.
C. ensures that certain characteristics of a population sample will be represented to the exact
extent that the researcher desires.
D. obtains units or people who are most conveniently available.

C 27. When a plastics manufacturer identifies a group of twenty key accounts to generate a
382 sales forecast for the next quarter, this is an example of a(n):
A. simple random sample.
B. systematic sample.
C. judgment sample.
D. probability sample.

C 28. When a mall intercept interviewer is asked to find owners of videorecorders and to
382 interview 10 owners of Sony videorecorders, 15 owners of RCA videorecorders, and 12 owners of
Mitsubishi videorecorders, this is an example of a(n):
A. stratified random sample.
B. systematic sample.
C. judgment sample.
Chapter 1 The Role of Business Research. 242

D. probability sample.

A 29. When a researcher who is studying “serious tennis players” asks 200 people if they
384 qualify as this type of player, and then asks those who do qualify to suggest the names of two other
“serious tennis players”, this is an example of a(n):
A. snowball sample.
B. systematic sample.
C. stratified random sample.
D. judgment sample.

B 30. A political pollster investigating an election in California might first choose counties
389 within the state. Next, the researcher selects precincts, and then blocks within the precincts. Then every
household on the block is sampled. This is an example of:
A. a census.
B. a multistage area sample.
C. a simple random sample.
D. stratified sampling-disproportionate.

D 31. A researcher who wants to study Ford dealers in Missouri and who sets up a computer
384 program to generate a random sample of 25 of these dealers is using a(n):
A. systematic sample.
B. stratified random sample.
C. judgment sample.
D. simple random sample.

A 32. Simple random sampling:


384 A. assures each element in the population an equal chance of being included in
the sample.
Chapter 1 The Role of Business Research. 243

B. is a technique in which an experienced researcher selects the sample based upon some
appropriate characteristic of the sample members.
C. draws subsamples from samples within different strata that are more or less equal on some
characteristic.
D. is an economically efficient technique in which the primary sampling unit is not the
individual element in the population, but a large cluster of elements.

D 33. Which of the following geographical subdivisions in urbanized areas represents the
389 smallest cluster?
A. central city
B. census tract
C. block
D. household

B 34. The subscription list of a West Coast magazine indicates it has 20,000 subscribers in
388 California, 10,000 in Oregon, and 5,000 in Washington. A researcher utilizes a computer to select a
random sample from the subscription list in each state. The computer was programmed to select a
sample of 200 from California, 200 from Oregon, and 200 from Washington. This is an example of:
A. stratified proportional sampling.
B. stratified disproportional sampling.
C. convenience sampling.
D. simple random sampling.

B 35. A researcher who selects one current customer from his organization’s list of 1,300
386 current customers and then selects every 30th customer on this list after this random start is using a(n):
A. simple random sample.
B. systematic sample.
C. stratified random sample.
D. judgment sample.

C 36. A researcher who wants to study graduate students in his university’s marketing
Chapter 1 The Role of Business Research. 244

386 program (which has 60 % males, 40% females) and who randomly selects 18 males and 12 females to be
interviewed from this list is using a(n):
A. systematic sample.
B. simple random sample.
C. stratified random sample.
D. nonprobability sample.

D 37. Sampling is useful when:


369 A. it is too costly to interview every member of the population.
B. it is impossible to interview every member of the population.
C. it is inconvenient to interview very member of the population.
D. all of the above are true.

D 38. Sampling can:


369 A. reduce the costs of the study.
B. reduce the labor requirements of an interview study.
C. gather important information in a short period of time.
D. all of the above.

D 39. The first step in selecting a sample is to:


373 A. determine the sample size.
B. select either a probability or a nonprobability method of sampling.
C. select the actual sampling units.
D. define the target population.

B 40. If an airline randomly selects 20 of its flights and then selects passengers in odd-
377 numbered seats to participate in a survey, then:
A. the passengers are the primary sampling unit.
B. the flights are the primary sampling unit.
C. the passengers are the tertiary sampling units.
Chapter 1 The Role of Business Research. 245

D. the flights are the tertiary sampling units.

A 41. A list of the current subscribers to The Journal of Marketing Research is a(n):
374 A. mailing list.
B. nonprobability sample.
C. systematic sample.
D. secondary sampling unit.

B 42. The idea that, in a mail survey, more educated individuals are more likely to fill out
379 their survey than less educated individuals is an example of:
A. random error.
B. systematic error.
C. periodicity.
D. sampling frame error.

D 43. When a researcher limits a sample to a group of his personal friends in order to
381 minimize non-response error, the sample is referred to as:
A. an error-free sample.
B. a probability sample.
C. a personal sample.
D. a nonprobability sample.

D 44. Which of the following would NOT be considered a nonprobability sample?


386 A. convenience
B. judgment
C. quota
Chapter 1 The Role of Business Research. 246

D. stratified

D 45. Which of the following is NOT a probability sample?


383 A. systematic
B. proportional stratified
C. disproportionate stratified
D. quota

D 46. When a TV newsperson asks a businessperson on a street corner: “Do you feel that the
381 President of the United States is doing a good job?”, this is an example of a(n) _____ sample.
A. stratified
B. judgment
C. quota
D. convenience

D 47. Which of the following is an advantage of quota sampling compared to probability


384 sampling?
A. Lower costs
B. Convenience
C. Speed of data collection
D. All of the above

C 48. The term used to describe a single element or group of elements subject to selection in
377 the sample is the:
A. population element.
B. random element.
C. sampling unit.
D. primary unit.
Chapter 1 The Role of Business Research. 247

C 49. When a professor assigns a number from 1 to 11 to each of the members of his class
385 and then rolls a pair of dice to select three of these students to be interviewed, this is an example of:
A. systematic sampling.
B. stratified random sampling.
C. simple random sampling.
D. nonprobability sampling.

C 50. In probability sampling:


381 A. there are no appropriate statistical techniques to measure random sampling
error.
B. there are two major subgroups of techniques: specialized sampling and simple random
sampling.
C. every population element has a known nonzero chance of being selected.
D. all of the above

D 51. Which of the following is NOT a convenience sample?


381 A. Man-on-the-street interviews
B. Interviewing booth at a shopping center
C. Business research class at a university
D. All of the above are convenience samples.

B 52. Selecting a test market city for a new product is an example of a ___ sample.
382 A. convenience
B. judgment
C. random
D. quota

A 53. When a researcher sets up a computer program to generate a random list of three-digit
385 numbers so that she can study the Savings and Loan Associations in Missouri, this is an example of a(n):
Chapter 1 The Role of Business Research. 248

A. simple random sample.


B. systematic sample.
C. nonprobability sample.
D. stratified random sample.

A 54. The last stage in the selection of a sample is to:


373 A. conduct fieldwork.
B. define the target population.
C. determine the sample size.
D. select the sampling frame.

D 55. A sampling procedure in which initial respondents are selected by probability methods,
384 and then additional respondents are obtained from information provided by initial respondents, is called
sampling.
A. semi-random
B. initial
C. quota
D. snowball

B 56. A researcher tells each interviewer in a mall-intercept study to select a sample


383 consisting of 100 people under age 40 and 50 people aged 40 or older, because these age groups are
representative of the desired population. This is an example of a sample.
A. judgment
B. quota
C. proportional stratified
D. random

A 57. When the sample is drawn from a consumer panel, re-contacting those who have not
396 completed the survey is:
A. quick and easy.
B. impossible.
Chapter 1 The Role of Business Research. 249

C. very expensive.
D. none of the above.

Fill in the Blank

1. "PSU" stands for __ _____ _____.


377
primary sampling unit

2. Purposive sampling is also known as sampling.


382
judgment

3. The is the complete group of specific population elements relevant to a research


373 project.

target population

4. A sample in which the initial starting point is selected at random, and then every 25th
386 number on the list is selected, is a(n) sample.

systematic
5. Equifax publishes a series of city phone directories that record the name of each
375 resident over 18 years of age and lists pertinent information about each household. The street directory
pages of this directory are called a(n) directory.

reverse
Chapter 1 The Role of Business Research. 250

6. A(n) occurs when certain sampling elements are not available and are not
375 represented in the sampling frame.

sampling frame error

7. The purpose of sampling is to estimate some of the population.


369
unknown characteristic

8. The difference between the sample result and the result of a census conducted using
377 identical procedures is a(n) .

random sampling error

9. The major alternative sampling plans may be classified in two groups: techniques
381 and techniques.

probability; nonprobability

10. In the technique, every member of the population has a known, nonzero
381 probability of selection.

probability sampling

11. In the technique, units of the sample are selected on the basis of personal
381 judgment or convenience.

nonprobability sampling

12. In a random-digit dialing study, the sampling unit is the _____ _____.
Chapter 1 The Role of Business Research. 251

377
telephone numbers

13. In the technique, initial respondents are selected by probability methods, and
384 then additional respondents are obtained from information provided by the initial respondents.

snowball sampling
14. When the primary sampling unit is not the individual element in the population but a
389 large cluster of elements, a(n) sampling technique is utilized.

cluster
15. In a cluster sample, you (do/don't) need a list of all individuals in the population.
389
don't

16. When there is a difference between the sample statistic and the corresponding value of
377 the population parameter, a _____ _____ has occurred.

statistical error

17. Grouping the population into strata or is referred to as stratified sampling.


386
homogeneous subgroups

18. In a(n) stratified sample, sample size for each stratum is not allocated on a
388 proportional basis with the population size, but by analytical consideration.

disproportionate

19. A(n) is the list of elements from which the sample may be drawn.
Chapter 1 The Role of Business Research. 252

373
sampling frame

20. The sample is the best known probability sample where each member of the population
384 has an equal probability of being selected.

simple random

21. The term sampling refers to the sampling procedure of obtaining people who are
381 most conveniently available.

convenience

22. Convenience samples are generally utilized when a large number of completed
381 questionnaires must be obtained and .

quickly; economically

23. The term sampling units is used to designate units selected in the first stage of
377 sampling.

primary

24. When the sampling frame includes people who are not really members of the
375 population of interest to the researcher, _____ _____ _____ has occurred.

sampling frame error


Chapter 1 The Role of Business Research. 253

25. The process of involves any procedure using a small number of items or parts of
369 the whole population to make conclusions regarding the whole population.

sampling

26. When an experienced individual selects a sample based upon some appropriate
382 characteristic of the sample members, a(n) sample has been taken.

judgment

27. Interviewing the "man on the street," as is frequently done by television news stations,
381 is an example of a(n) sample.

convenience

28. In systematic sampling, the term refers to a problem that occurs when the original
386 list of items has a systematic pattern.

periodicity

29. There are (no/some) appropriate statistical techniques which can be used to measure
381 random sampling error from a nonprobability sample.

no
Chapter 1 The Role of Business Research. 254

Chapter 17
Determination of Sample Size: A Review of the Statistical Theory

True-False Questions

T 1. Constructing a frequency distribution is one of the most common means of


403 summarizing a set of data.

T 2. Assuming the population mean is unknown, we must estimate the population standard
411 deviation by finding S, the sample standard deviation.

F 3. The smaller the sample, the more accurate the research.


423

F 4. Descriptive statistics are used to make an inference about the population from a
402 sample.

T 5. The goal in utilizing statistics is to make an estimate about the target population's
402 parameters.

T 6. The population mean and population standard deviations are constants, but in most
423 instances of business research they are unknown.
Chapter 1 The Role of Business Research. 255

T 7. In statistical terms, increasing the sample size decreases the width of the confidence
425 interval at a given confidence level.

T 8. Increasing sample size is similar to the law of diminishing returns in that increases in
423 sample size reduce sampling error at a decreasing rate.

T 9. The frequent selection of the 95 percent confidence level is an arbitrary decision based
425 on convention.

F 10. A rule of thumb for estimating the value of the standard deviation is to expect it to be
425 one-tenth of the range.

T 11. To estimate the sample size, it is necessary to have an estimate of the standard
425 deviation of the population.

T 12. The following formula is the formula for calculating the standard deviation:

2
( X i - X )
2
S= S =
n -1

410

F 13. Inferring that the results of a test market in Kansas City are likely to be a good
402 predictor of national sales is an example of the use of descriptive statistics.

T 14. Variables in the sample are known as sample statistics.


402

F 15. Variables in the population are known as sample statistics..


Chapter 1 The Role of Business Research. 256

402

F 16. The median is the arithmetic average of the scores.


406

T 17. Before a confidence interval can be constructed around a sample proportion, an


427 estimate of the standard error of the proportion (Sp) must be calculated.

F 18. To calculate a confidence interval around a proportion, the following formula is used:

P = ZS x

427

T 19. When investigating proportions, the symbol q stands for the proportion of failures.
427

T 20. The symbol Sp represents the standard error of the proportion.


427

F 21. The symbol S x represents the standard error of the proportion.


416

T 22. When the research problem involves a proportion, there are a number of easy-to-use
428 tables that can help calculate sample size.
F 23. The Statistical Abstract of the United States presents table after table of inferential
402 statistics.

F 24. The range uses all of the scores.


407
Chapter 1 The Role of Business Research. 257

F 25. The term population parameter is used to designate the variables in the sample.
402

F 26. The average deviation is useful as a measure of the spread of the scores.
409

F 27. The variance is a poor measure of the degree of dispersion of the scores.
409

T 28. When a frequency distribution portrays only a single characteristic as a percentage of


404 the total, the proportion of occurrence is defined.

F 29. If calculated correctly, the mean and the median of a sample will always produce the
406 same value.

F 30. If calculated correctly, the mean and the mode of a sample will always produce the
406 same value.

T 31. The following formula is used to calculate a deviation from the mean:

di = ( X i - X )

407
F 32. The average deviation of data around the mean is a useful measure of dispersion of the
409 data.

F 33. The variance will become smaller as the observations differ increasingly from one
409 another.
Chapter 1 The Role of Business Research. 258

T 34. Variance is a measure of dispersion.


409

F 35. The square of the variance for the distribution is called the standard deviation.
409

T 36. In a normal curve, about 99 percent of the values will be within three standard
411 deviations from the mean.
F 37. The mode is the middle point of the distribution or the 50th percentile.
406

F 38. The median refers to the value that occurs most often.
406

T 39. The mean is the arithmetic average of the distribution.


404

T 40. The percentage of men who buy Chrysler convertibles is a proportion.


404

T 41. The range is the simplest measure of dispersion.


406

F 42. The central-limit theorem states that as the sample size decreases, the distribution of
417 the means of random samples approaches a normal distribution.

F 43. The standard deviation is the distance between the smallest and the largest values of a
409 frequency distribution.

F 44. The point estimate gives information about the magnitude of random sampling error.
Chapter 1 The Role of Business Research. 259

420

T 45. The normal distribution is also called the normal curve.


411

T 46. Within three standard deviations from the mean, a normal curve will include 99 percent
411 of the values.

T 47. The larger the sample size, the more accurate the research results.
423

F 48. The standardized normal distribution is asymmetrical about its mean.


412

F 49. The standardized normal distribution is unusual because its mean is ten and its standard
412 deviation is ten.

F 50. The standardized normal distribution has a mean of one and a standard deviation of
412 zero.

T 51. The standardized normal distribution is a useful distribution in inferential statistics.


412

F 52. If n decreases, the error is reduced.


423

F 53. A rule-of-thumb for estimating the standard deviation is to take one-half of the range.
425
Chapter 1 The Role of Business Research. 260

F 54. Doubling sample size reduces the error by one-half.


425

F 55. In estimating the needed sample size, a common practice is to use the sample size
428 suggested by the survey item which produces the smallest sample size figure.

T 56. Statistics is the language of communication for the researcher.


401

T 57. The central-limit theorem applies regardless of the shape of the original distribution.
417

F 58. Population parameters are used to make inferences about sample statistics.
402

T 59. The mode of the following set of scores is 3: 3, 5, 7, 3, 8, 4, 3


406

F 60. The interquartile range is the simplest measure of dispersion.


406

T 61. The standard error of the mean is approximately equal to the population standard
416 deviation (or estimate of sample standard deviation) divided by the square root of n.

F 62. The range is defined by the middlemost 50 percent of the observations.


406

F 63. The central-limit theorem works only when the original population distribution is
417 assumed to be symmetrical.
Chapter 1 The Role of Business Research. 261

Multiple Choice Questions

B 1. Another way to express the following formula:

X
i=1
i

404
would be to write:
A. di = (Xi - X)
B. X1 + X2 + X3+...Xn
C. X1 + X2 + X3 +...Xn
D. n = (i=1) Si

D 2. Which of the following is NOT required to specify sample size?


423 A. Magnitude of acceptable error
B. Confidence level
C. Variance (heterogeneity) of the population
D. All of the above are required.

C 3. The measured characteristics in a population are called:


402 A. inferential variables.
B. statistics.
C. parameters.
D. descriptive numbers.

A 4. If a graduate program in marketing includes 56 male students and 48 female students,


Chapter 1 The Role of Business Research. 262

404 the proportion of students who are female is approximately:


A. 46 percent.
B. 54 percent.
C. 86 percent.
D. none of the above.

D 5. Increases in sample size random sampling error at a(n) rate.


423 A. increase, increasing
B. increase, decreasing
C. decrease, increasing
D. decrease, decreasing

C 6. In statistical terms, at a given confidence level, increasing the sample size will:
421 A. increase the width of the confidence interval.
B. have no effect on the width of the confidence interval.
C. decrease the width of the confidence interval.
D. have an indeterminant effect on the width of the confidence interval.

A 7. When determining sample size, the heterogeneity of the population is estimated with:
416 A. the standard deviation of the sample.
B. the confidence interval.
C. the confidence level.
D. level of statistical significance.

D 8. To determine sample size, the unknown standard deviation of a population may be


425 estimated by:
Chapter 1 The Role of Business Research. 263

A. a pilot study.
B. the range of the data for the sample divided by six.
C. similar studies conducted in the past.
D. any of the above.

B 9. Before a confidence interval can be constructed around a sample proportion:


427 A. the sample mean must be calculated.
B. an estimate of the standard error of the proportion (Sp) must be calculated.
C. the standard error of the mean is divided by the square root of n must be calculated.
D. none of the above.

A 10. The confidence interval for a proportion uses the following formula:
427 A. p ±ZSp
B. Sp ±ZP

C. X  ZS x

D. none of the above

C 11. Calculate the sample mean using the following data:


Chapter 1 The Role of Business Research. 264

405
X
4
5
2
6
4
3
4

The mean is:


A. 7.0
B. 3.0
C. 4.0
D. none of the above

B 12. Calculate the sample standard deviation using the following data:
410
X
4
5
2
6

The sample standard deviation is approximately:


A. 0.84.
B. 1.71.
C. 2.25.
D. none of the above.
Chapter 1 The Role of Business Research. 265

C 13. Calculate the standard deviation using the following data:


410
X
6
4
3
2

The standard deviation is:


A. 0.84.
B. 1.25.
C. 1.71.
D. none of the above.

B 14. Given the following information, calculate a confidence interval using a 95 percent
422 confidence level: sample mean = 500, standard deviation of the sample = 100, and sample size = 225.
A. 500 + 1.96 (25) to 500 - 1.96 (25)
B. 500 + 1.96 (6.67) to 500 - 1.96 (6.67)
Chapter 1 The Role of Business Research. 266

C. 500 + 1.96 (100) to 500 - 1.96 (100)


D. 500 + 100 (25) to 500 - 100 (25)

C 15. Given the following information, calculate a confidence interval using a 95 percent
427 confidence level: sample proportion = .4, standard error of the proportion = .05, and sample size = 100.
A. .4 + .05 to .4 - .05
B. .4 + 2.57(100) to .4 - 2.57(100)
C. .4 + 1.96(.05) to .4 - 1.96(.05)
D. .4 + 1.96(.005) to .4 - 1.96(.005)

D 16. What Z-value would be used to set up a confidence interval at the 95 percent
427 confidence level when the sample size is 200?
A. .01
B. .05
C. 1.65
D. 1.96

D 17. What is the median of the following set of scores? 3, 6, 9, 4, 7, 2, 8


406 A. 4
B. 7
C. 9
D. 6

C 18. A researcher conducts a survey and calculates the confidence interval to be between
421 400 and 440 at the 95 percent confidence level. This means that:
A. There is a 90 percent probability that the sample mean will fall in this range.
B. There is a 100 percent probability that the population mean will fall in this range.
C. If 100 samples were conducted, 95 times out of 100 the true population mean would fall
within the confidence interval that was calculated.
D. If 100 samples were conducted, 5 times out of 100 the sample mean would fall within the
confidence interval that was calculated.
Chapter 1 The Role of Business Research. 267

D 19. What is the mode of the following set of scores? 4, 6, 9, 3, 4, 7, 4


406 A. 3
B. 9
C. 6
D. 4

B 20. If the smallest score is 26 and the largest score is 83, the range is:
406 A. 3.19.
B. 57.
C. 0.31.
D. none of the above

A 21. Which of the following is NOT a measure of central tendency?


404 A. Range
B. Mode
C. Median
D. Mean

B 22. The is the value below which half of the values in the sample fall.
406 A. mean
B. median
C. mode
D. range

A 23. The mean always equals:


404 A. the arithmetic average.
B. the median.
C. the mode.
D. the range.
Chapter 1 The Role of Business Research. 268

B 24. In inferential statistics the symbol n stands for:


405 A. the normal distribution.
B. the number of observations in the sample.
C. the number of elements in the population.
D. none of the above.

C 25. The interquartile range includes the scores between which quartiles?
407 A. lowest and middle
B. highest and middle
C. lowest and highest.
D. none of the above.

A 26. For the following set of scores, the deviation from the mean for the score of 4 is
407 approximately: 3, 6, 8, 2, 4, 9
A. -1.33.
B. 1.0.
C 1.33.
D. -1.0.

C 27. If the mean if 80 and the standard deviation is 12, what would be the Z-score value for
413 a score of 68?
A. 1.0.
B. 6.67.
C. -1.0.
D. 0.15.
Chapter 1 The Role of Business Research. 269

B 28. To estimate the standard error of the mean, a survey researcher will:
416 A. multiply the sample standard deviation times the square root of the sample
size.
B. divide the sample standard deviation by the square root of sample size.
C. take the square root of the sample standard deviation.
D. none of the above.

B 29. If the sample size is “sufficiently large” and if the sample is drawn randomly from the
417 population, according to the _____ theorem, the sampling distribution of the mean will be approximately
normal.
A. average deviation
B. central-limit
C. population distribution
D. frequency distribution

B 30. Which confidence level has become the “traditional” confidence level among business
421 researchers?
A. 90 percent
B. 95 percent
C. 99 percent
D. 85 percent

D 31. If the mean is 500 and the standard deviation is 100 for a sample size of 125, the 95
422 percent confidence interval for a Z-value of 1.96 is approximately between:
A. 487.4 and 512.6.
B. 492.4 and 508.6.
C. 490.5 and 510.6.
D. 482.5 and 517.5
Chapter 1 The Role of Business Research. 270

C 32. A specific range of numbers within which a population mean should lie is:
421 A. the range.
B. the confidence coefficient.
C. the confidence interval.
D. the confidence level.

C 33. If the mean is 500 and the standard deviation is 100 for a sample size of 225, the 99
422 percent confidence interval for a Z-value of 2.57 is approximately between:
A. 480.4 and 510.6.
B. 485.3 and 512.4.
C. 482.9 and 517.1.
D. none of the above.

B 34. If the range of prices for a 13-inch color television set for local competitors is between
425 $300 and $450, a rule-of-thumb estimate for the standard deviation of this type of television set for these
types of competitors would give a value of approximately:
A. $30.00.
B. $25.00.
C. $20.00.
D. none of the above.

D 35. The standard deviation:


409 A. is the most valuable measure of dispersion.
B. does not have the limitations of the average deviation.
C. does not have the drawbacks of the variance because its unit of measure is not squared, but is
in the same unit of measure as the mean.
D. all of the above.

C 36. In attempting to estimate the amount of money which members of a target market
Chapter 1 The Role of Business Research. 271

425 segment spend yearly on toothpaste, a researcher wants to use a Z-value of 1.96 and an error of $0.50. If
past research studies have found that the standard deviation for this type of study on this target market
segment has been approximately $2.34, approximately what sample size should the researcher use in this
study?
A. 123
B. 64
C. 85
D. None of the above

B 37. The standardized normal curve always:


412 A. is asymmetrical around its mean.
B. has a mean of zero and a standard deviation of one.
C. both of the above.
D. none of the above.

A 38. If p = .40 for a sample size of 100, the standard error of the proportion is
427 approximately:
A. 0.05.
B. 0.03.
C. 0.07.
D. none of the above.

C 39. If p = .30 and the sample size is 200, the 95 percent confidence interval when the Z-
427 value is 1.96 is approximately between:
A. .274 and .336.
B. .254 and .348.
C. .237 and .363.
D. none of the above.

B 40. The formula:


413
Chapter 1 The Role of Business Research. 272

Z = (X -  )/ ,

where  is the hypothesized or expected value of the mean, is:


A. the formula for a confidence interval.
B. the way of making a linear transformation of any normal variable into the standard normal
variable.
C. the formula for calculating the standard error of the mean.
D. the computation for estimating the value of the central limit theorem.

B 41. If you wish to estimate the mean of a particular population, doubling the range of
425 acceptable error will reduce sample size to its original size.
A. one-half
B. one-fourth
C. twice
D. It cannot be determined.

B 42. When the Z-value is 1.96 and p = .40, the sample size needed so that the error will be
427 plus or minus 3 percent will be approximately:
A. 936.
B. 1,025.
C. 812.
D. none of the above.

C 43. When a business researcher wants to analyze the data for different subgroups of the
428 sample under study, a good rule-of-thumb is that each subgroup should have a minimum of _____ units
in each category of the major breakdown.
A. 30
B. 60
Chapter 1 The Role of Business Research. 273

C. 100
D. none of the above

C 44. Suppose that a business researcher is attempting to estimate the amount that members
425 of a target market segment spend annually on detergent and wants to use a Z-value of 1.96. If past
research studies with this target market segment have shown that the standard deviation for this type of
study was approximately $3.12, approximately what sample size should the researcher use if he wants an
error of plus or minus $0.50?
A. 50
B. 100
C. 150
D. None of the above

A 45. Which of the following is the symbol for the sample standard deviation?
409 A. S

B.
2

C. 

D. 2

B 46. Which of the following is the symbol for the population standard deviation?
411 A. S

B. 

C. 
D. S2
Chapter 1 The Role of Business Research. 274

A 47. Suppose that a researcher wants to use a Z-value of 1.96, and in a pilot test this
427 researcher found that p = .60. If the researcher wants the error to be plus or minus 5 percent, the sample
size needed should be approximately:
A. 369.
B. 247.
C. 158.
D. none of the above.

C 48. The idea of a confidence interval may be expressed as follows:


421 A. n = (2S)2/E.
B. E = a small sampling error plus systematic nonsampling administration errors.

C. = X  a small sampling error.


D. none of the above.

B 49. The following formula is the formula for calculating the ______ .
410

2
( X i - X )
S = S2 =
n -1

A. standard error of the mean..


B. standard deviation.
C. standard normal distribution.
D. variance.

D 50. The formula below is the formula for calculating the ______ .
409
Chapter 1 The Role of Business Research. 275

2 (X - X )2
S =
n -1

A. standard deviation.
B. standard error of the mean.
C. standard error of the proportion.
D. variance.
Fill in the Blank

1. The branch of statistics used to describe or summarize information about a population


402 or sample is called .

descriptive statistics

2. The tables in The Statistical Abstract of the United States are an example of _____
402 statistics.

descriptive

3. The operation "the sum of" is represented by the symbol .


404

4. The standardized normal distribution has a standard deviation of .


412
one

5. In a set of data, when the frequency of each value is divided by the total number of
403 observations in the data and then multiplied by 100, the resulting distribution is called a(n) _____
distribution.
Chapter 1 The Role of Business Research. 276

percentage

6. Suppose that the test scores on the graduate admission tests for schools of business are
411 approximately normally distributed. This means that approximately percent of these scores will be
within three standard deviations of the mean.

99

7. Suppose that the test scores on the graduate admissions test for programs in biology are
413 approximately normally distributed. This means that approximately percent of these scores will be
within two standard deviations of the mean.

95

8. A confidence level of 99 percent means the researcher only wants a(n) percent
421 chance of making a wrong decision.

one
9. Smith and Johnson Advertising Agency conducted a telephone survey and concluded
402 12 percent of those called recalled a toothpaste commercial aired on TV the night before. Is this a
statistic or parameter?

statistic

10. For sophisticated mathematical reasons, n - 1 is utilized in the calculation of the


409 variance and standard deviation. The formula
Chapter 1 The Role of Business Research. 277

2 (X - X )2
S =
n -1

is the formula for the . (Answer could be several words).

variance

11. We use the term to designate variables in a sample or measures computed from
402 the sample data.

sample statistics

12. We use the term to designate the variables in a population or measured


402 characteristics of the population.

population parameter

13. A(n) is the organization of probability values associated with particular values
403 of a variable into a table or graph.

probability distribution

14. The simplest measure of the dispersion of a set of scores is the _____.
406
range
Chapter 1 The Role of Business Research. 278

15. Complete the following table:


411
Standard
Distribution Mean Deviation
Population
Sample

Standard
Distribution Mean Deviation

Population  

Sample X S

16. The following formula is the formula for calculating the .

2
( X i - X )
S = S2 =
n -1

410
standard deviation

17. One of the most useful probability distributions in statistics is the _____ _____, which
411 is also called the normal curve. (Answer could be several words).

normal distribution

18. A _______ distribution records the number of times a particular value of a variable
Chapter 1 The Role of Business Research. 279

403 occurs.

frequency

19. A proportion may be expressed as a ________, a fraction, or a decimal.


404
percentage

20. The ___ theorem is a proposition stating that as a sample size increases, the
417 distribution of sample means of size n, randomly selected, approaches a normal distribution.

central-limit

21. The __ _____ is a percentage or decimal value that tells how confident a researcher
421 can be about being correct.

confidence level

22. Complete the following table:


425
Variable Symbol Typical Source of Information
Standard deviation
Confidence level
Magnitude of error

Variable Symbol Typical Source of Information


Standard deviation S Pilot study or rule of thumb
Chapter 1 The Role of Business Research. 280

Confidence level Z c.l. Managerial judgment


Magnitude of error E Managerial judgment

23. The range (does/does not) take into account all of the observations in the data set.
406
does not

24. A research firm estimated the age for purchasers of mountain bikes would be between
422 13 and 40. Researchers said they were 95 percent confident that ages would fall within this range. What
Z-value did they use? .

1.96

25. What Z value would they use if they wished to be 99 percent confident?
423
2.57

26. In a 95 percent confidence interval, we would expect that 95 times out of 100 the true
422 _ would fall within the interval.

population mean, confidence

27. The is determined by the error that can be allowed in the estimate (confidence
425 interval) and the desired reliability of the estimate (confidence level).

sample size

28. n = (ZS/E)2 is the formula for .


425
Chapter 1 The Role of Business Research. 281

sample size

29. The is the measure of central tendency and corresponds to the value that occurs
406 most frequently in the distribution.

mode

30. Half of the observations occur below the __ and half of the observations occur above
406 it in the distribution.

median.

31. The median is located at the percentile.


406
50th

32. The normal curve is a bell-shaped curve. Statisticians refer to the shape of this curve as
412 being .

symmetrical

33. The is the difference between the smallest and largest values of a frequency
406 distribution.

range

34. The average deviation is (useful/ useless) as a measure of the spread of the distribution.
409
useless
Chapter 1 The Role of Business Research. 282

35. Squaring the deviation scores eliminates the problem of always having zero as our
409 measure of dispersion. Calculating the variance,

(X - X )2
n -1

eliminates the problem. However, the variance is in units of measurement rather than the original
measurement units.

squared

36. The most useful measure of dispersion is the .


409
standard deviation

37. The area under the normal curve has a probability density equal to .
412
Chapter 1 The Role of Business Research. 283

1.0

38. The standardized normal distribution has a mean of .


412
zero

39. If we say that we are 95 percent confident that the population mean is a number of
421 sales calls per day between 3.2 and 3.8, this estimate would be a(n) .

interval estimate

40. We expect that the population mean (probably will/probably will not) fall within the
422 confidence interval.

probably will
41. If we set up a 95 percent confidence interval, then we would conclude there would be
422 a(n) out of 100 chance that the population mean would not fall within the confidence interval.

42. If the mean is 60 and a score is 40, the deviation score is ________ .
408
- 20
43. If the mean is 120 and a score is 150, the deviation score is ______ .
408
30

44. If the mean is 13 and the standard deviation is 3, a z-score for a score of 10 is ______ .
413
- 1.0
Chapter 1 The Role of Business Research. 284

45. The , , and are the three measures of central tendency.


406
mean, median, mode

46. The is a theoretical probability distribution of all possible samples of a certain


416 size drawn from a particular population.

sampling distribution

47. The standard deviation for the sampling distribution of the mean is called the ___
416 _____ of the mean.

standard error

48. Because tables for the area under the standard normal curve are available in most
413 statistical textbooks, the standard normal curve is a useful distribution. To learn about the area under
our distribution of X, we must the data from our distribution to the Z distribution.

transform (convert)

49. The standard deviation (increases/decreases) as the data points differ increasingly from
410 one another.

increases
50. The goal of inferential statistics to make an inference about a population is based on
402 a(n) .

sample
Chapter 1 The Role of Business Research. 285

51. A group that consists of every element, or all, of something we wish to investigate is
402 called a(n) .

population

52. The population parameters representing the mean and standard deviation are
402 represented by the Greek letters and .

mu, sigma

53. The sampling distribution is a theoretical probability distribution that is of great


416 importance in inferential statistics. The sampling distribution is a distribution of all possible of a
certain sample size.

sample means

54. In practice, the standard error of the mean is estimated by using the _____ _____ of the
416 sample.

standard deviation

55. A(n) is an estimate of the population mean using a single value, usually the
420 sample mean.

point estimate

56. Increasing the size of the sample will the magnitude of S x .


416
decrease
Chapter 1 The Role of Business Research. 286

57. As the sample size _____ (increases/decreases), the spread of the sample means around
417 the population mean (decreases/increases).

increases; decreases

58. The range, variance, and standard deviation are measures of .


406
dispersion
59. The symbol n stands for the ___ ______.
423
sample size

60. The branch of statistics that is used to make judgments about a population on the basis
402 of a sample is called .

inferential statistics

61. The symbol measures the dispersion in the population; the symbol measures the
416 dispersion in the sample.

 ,S

62. The symbol for the standard error of the mean is .


416

Sx
Chapter 1 The Role of Business Research. 287

Chapter 18
Fieldwork

True-False Questions

T 1. If an interviewer believes a respondent has more to say, pausing and looking at the
440 respondent expectantly may help.
Chapter 1 The Role of Business Research. 288

F 2. Interviewing is a simple skill that everyone can learn to do well.


442

F 3. People who enjoy talking with strangers generally make poorer interviewers.
436

T 4. Interviewers are generally not provided with much information about the purpose of
446 the study to ensure that they will not transmit any preconceived notions to respondents.

T 5. When the field-worker has some discretion in the selection of respondents, the
446 potential for selection bias exists.

T 6. The supervision of interviewers, like other forms of supervision, refers to the


447 controlling of the efforts of workers.

F 7. The majority of fieldworkers are men.


437

T 8. The actual data collection process is rarely done by the person who designs the
436 research.

T 9. The objective of fieldwork training is to assure that the data collection instrument is
437 administered in a uniform fashion by all field-workers.

T 10. Inexperienced interviewers often do not understand the importance of strict adherence
448 to instructions.

F 11. There is no evidence that the foot-in-the-door technique is useful in obtaining


438 interviews.
Chapter 1 The Role of Business Research. 289

T 12. When a respondent remains completely silent after being asked a question, mere
440 repetition of the question may encourage the respondent to answer the question.

F 13. To avoid bias, an interviewer should avoid repeating the respondent's reply verbatim.
441

F 14. An interviewer finds that respondents are more likely to complete a large, complex
438 questionnaire if they have already agreed to a brief telephone interview. This is an example of the door-
in-the-face compliance technique.

F 15. Another interviewer finds that respondents are more likely to complete a brief survey if
438 they have already refused to fill out a long, time-consuming questionnaire. This is an example of the
foot-in-the-door compliance technique.

T 16. When respondents agree to complete a brief survey, after they have already refused to
438 fill out a longer, more complex one, this is known as the door-in-the-face compliance technique.

T 17. In recording the responses to open-ended questions, the interviewer should avoid the
441 temptation to conserve time by summarizing comments.

T 18. A good rule-of-thumb for an interviewer is not to record a respondent’s response


443 unless the interviewer fully understands the response.

Multiple Choice Questions

B 1. Which training topic is being covered when the interviewers are being instructed in
437 how to say: “Good evening, my name is ___ ____ and I’m calling from a national research organization
in Cleveland?”
A. How to probe
B. How to make initial contact
Chapter 1 The Role of Business Research. 290

C. How to ask survey questions


D. How to record responses

A 2. All of the following might be acceptable probing, EXCEPT:


440 A. "Why won't you answer me?"
B. "What do you mean?"
C. "Could you tell me about your thinking on that?"
D. "Any other reason?"

D 3. The Interviewer's Manual of the Survey Research Center gives instructions on how to
441 record open-ended-response questions. Which of the following is NOT one of these instructions?:
A. Use the respondent's own words.
B. Record responses during the interview.
C. Include all your own probes.
D. Summarize the respondent's answer if it is too long to fit on the page.

C 4. A good rule-of-thumb is that supervisors should verify approximately of the


448 interviews by reinterviewing respondents.
A. 1 to 2 percent
B. 5 percent
C. 15 percent
D. 75 percent

D 5. Which of the following is a good practice for becoming a good interviewer?


442 A. Be patient and tactful.
B. Pay attention to accuracy and detail.
C. Exhibit genuine interest in the inquiry at hand, but keep your opinions to yourself.
D. All of the above are good practices
Chapter 1 The Role of Business Research. 291

D 6. In interviewing, another term for an “expectant pause” is:


440 A. a briefing session.
B. probing.
C. verification.
D. a silent probe.

D 7. Probing of respondents is needed when:


440 A. they do not understand the question.
B. they refuse to answer the question.
C. they begin to ramble or they give a vague answer.
D. all of the above.

A 8. Which probing technique is being used when an interviewer says to a respondent:


441 “Why do you feel that way?”
A. Neutral question
B. Repetition of the respondent’s reply
C. Repetition of the question
D. An expectant pause

C 9. Which probing technique is being used when an interviewer says to a respondent:


441 “What do you mean by that?”
A. Repetition of the respondent’s reply
B. An expectant pause
C. Neutral question
D. Repetition of the question

C 10. Field errors generally are detected when a thorough is conducted.


Chapter 1 The Role of Business Research. 292

448 A. analysis
B. audit
C. verification
D. pretest

D 11. Which of the following is a field-worker error?


444 A. Asking questions in the wrong order
B. Recording the wrong response
C. Interviewing the wrong person
D. All of the above

D 12. Field-workers may reduce the incidence of not-at-homes by all of the following
447 procedures EXCEPT:
A. using judgment in scheduling calls.
B. using the call-back procedure.
C. making appointments in advance.
D. substituting a neighbor for the not-at-home.

B 13. When an interviewee says to an interviewer: “I don’t know what ‘economic downturn’
439 means,” what should the interviewer do?
A. Explain in her own words what the term means.
B. Say: “Just whatever it means to you.”
C. Give an ad lib clarification of the term.
D. None of the above.

D 14. Which of the following topics should be included in the briefing session for
445 interviewers?
A. Asking questions
B. Callback procedures
C. Background of the sponsoring organization
Chapter 1 The Role of Business Research. 293

D. All of the above

C 15. Which of the following would NOT be considered a neutral probing technique?
441 A. Reassuring respondents
B. Repeating a question
C. Rephrasing a question
D. Repeating a respondent's reply

A 16. The primary objective of fieldwork training is to insure that:


437 A. data will be collected in a uniform manner.
B. households will be selected in a random manner.
C. all interviewers have an acceptable appearance.
D. none of the above.

A 17. The following phrases used by a field-worker are all recommended EXCEPT:
438 A. At first contact--"May I come in?"
B. After respondents say they are busy--"Will you be in at 4:00 o'clock this afternoon? I will be
happy to come back then."
C. When making a telephone contact--"Good evening, my name is . I'm calling from Burke
Survey Research in Cincinnati, Ohio."
D. All of the above are recommended.

B 18. The "foot-in-the-door" technique:


438 A. is not used by a company sensitive to its public image.
B. begins with a smaller initial request for data.
C. is only useful in conjunction with personal selling.
D. seldom is used by ethical field-workers.
Chapter 1 The Role of Business Research. 294

B 19. Which of the following is NOT a major principle for asking questions during an
440 interview?
A. Repeat questions which are misunderstood.
B. Reword questions when they are misinterpreted.
C. Ask questions in the order of the questionnaire.
D. Ask every question specified in the questionnaire.

Fill in the Blank

1. __ ______ ______ is a fieldwork supervision task that requires re-contacting


448 respondents to assure that interviews were properly conducted.

Verification by re-interviewing

2. A research supplier that specializes in data gathering is called a(n) .


436
field interviewing service

3. The process of __ attempts to ensure that the interviewers are following the
448 sampling procedure and to detect interviewers who falsify interviews.

verification

4. When recording the respondent’s answers during an interview, the interviewer should
441 use a _____.

pencil
Chapter 1 The Role of Business Research. 295

5. An important principle for asking questions in an interview is to ask the questions


445 exactly in the questionnaire.

as they are worded

6. When respondents do not understand a question, they will usually ask for some
440 clarification. The recommended procedure for the interviewer is to _____ _____ _____.

repeat the question

7. Generally, when companies hire new interviewers, the new employees are expected to
437 attend a training session called a(n) to ensure that all interviewers are provided with common
information.

briefing session

8. A(n) is a practice session during which an inexperienced field-worker records


437 answers on a questionnaire to develop his or her skills.

training interview

9. An interviewer finds that respondents are more likely to complete a large, complex
438 questionnaire if they have already agreed to a brief telephone interview. This is an example of the __
compliance technique.

foot-in-the-door

10. Another interviewer finds that respondents are more likely to complete a brief survey if
438 they have already refused to fill out a long, time-consuming questionnaire. This is an example of the
___ compliance technique.
Chapter 1 The Role of Business Research. 296

door-in-the-face

11. A fieldwork supervision task that requires checking to assure that samples conform to a
447 project's sampling plan is known as .

sampling verification

12. When a respondent gives an answer that is not complete or has some ambiguity, the
440 interviewer should ____ .

probe

13. Field-workers should not close the interview before has been secured.
445
all pertinent information

14. When an interviewer falsifies interviews, this is in its most blatant form.
447
interviewer cheating

15. A personal interviewer who goes door-to-door administering questionnaires is an


435 example of a(n) ____.

field-worker
Chapter 1 The Role of Business Research. 297

Chapter 19
Editing and Coding: Beginning to Transform Raw Data into Information

True-False Questions

F 1. Coding is the process of checking data for omissions, legibility, and consistency.
454

T 2. The editor should extract all possible information while adding nothing extraneous.
454

T 3. A record is a collection of related fields.


457

T 4. A file is a collection of related records.


458

T 5. A data matrix is a rectangular arrangement of data into rows and columns.


458

F 6. Differentiating categories of answers for the coding of open-ended questions is less


463 difficult than coding fixed-alternative questions.

F 7. The coding of open-ended questions is a simple process.


463

F 8. The process of verifying data entry should always be done by the same person who
468 entered the data in the first place.
Chapter 1 The Role of Business Research. 298

T 9. The final stage in the coding process is the error checking and verification stage.
470

T 10. A field edit may determine that additional interviewer training is necessary.
454

T 11. In some cases, it is possible for an editor to separate legitimate “don’t know” answers
456 from the other types of “don’t know” answers.

T 12. If initial coding creates "too many" categories, they may always be collapsed at a later
465 time in the analysis.

T 13. An editor frequently makes any changes in a colored pencil.


457

T 14. As a general coding rule, it is better to assign too many categories rather than too few
465 categories.

T 15. Production coding is the actual process of transferring the data from the questionnaire
466 to the storage medium.

F 16. The difference between "information" and "data" is that data refer to a body of facts
453 that are in a format suitable for decision making.

T 17. It is very helpful to edit surveys during the pretest stage.


457

T 18. Information is a body of facts that are in a format which is suitable for decision-
453 making.
Chapter 1 The Role of Business Research. 299

F 19. Information is simply a recorded measure of a phenomenon.


453

F 20. If a respondent records weekly income instead of monthly income as was asked on a
454 survey, the process of converting this weekly figure into a monthly figure is called coding.

T 21. Coding is the process of identifying and assigning a numerical score or other character
457 symbol.

T 22. An unanswered question in a survey is called an item non-response.


455

T 23. When a highly structured questionnaire is utilized, pre-coding of categories may occur
460 even before the data are collected.

T 24. Classifying responses to some types of questions may occur either before data are
460 collected or after the data are collected.

T 25. An editor must decide whether a returned survey is “usable.”


456

T 26. Coding gender as male or female is an exhaustive set of codes.


459

T 27. Codes allow the data to be processed by a computer.


466

F 28. A field is a collection of related records.


457
Chapter 1 The Role of Business Research. 300

Multiple Choice Questions

A 1. The purpose of is to insure completeness, consistency, and readability of the data to


454 be transferred to data storage.
A. editing
B. coding
C. keypunching
D. checking

C 2. Procedures that are conducted to make the data ready for coding and transferred to data
454 storage are known as procedures.
A. coding
B. descriptive analysis
C. editing
D. supervisory

B 3. The process of can be described as "bringing to light all the hidden values and
454 extracting all possible information from a questionnaire, while adding nothing extraneous."
A. field work
B. editing
C. coding
D. auditing

A 4. If a researcher must convert a respondent's weekly income to monthly income, the


454 researcher is engaged in:
A. editing.
B. coding.
C. test tabulation.
D. unethical analysis.
Chapter 1 The Role of Business Research. 301

B 5. The process of identifying and assigning a numerical score or other character symbol is
457 called:
A. editing.
B. coding.
C. data entry.
D. test tabulation.

D 6. In the coding process:


458 A. the arrangement of data into rows and column is called a record.
B. a file is a collection of characters that represent a single type of data.
C. a field is a collection of related records.
D. a record is a collection of related fields.

C 7. A is a rectangular arrangement of data into rows and columns.


458 A. file
B. record
C. data matrix
D. test tabulation

B 8. The two basic rules for code construction are that coding categories must be:
459 A. exhaustive and compatible.
B. exhaustive and independent.
C. independent and mutually exclusive.
D. compatible and mutually exclusive.

A 9. Which of the following types of questions are LEAST likely to be precoded?


461 A. Open-ended questions
B. Multiple choice questions
C. Yes-no questions
D. Categorical questions
Chapter 1 The Role of Business Research. 302

D 10. When a telephone interviewer mistakenly records a birth year as 1875, correcting this
454 mistake is an example of:
A. test tabulation.
B. coding.
C. precoding.
D. editing.

C 11. Arbitron measures radio audiences. The process of checking to make sure that the
454 dates on the respondents’ returned diaries of their listening behavior do not come after the postmark date
on the form is known as the process of:
A. test tabulation.
B. coding.
C. editing.
D. precoding.

D 12. After code categories have been established and all data have been coded, it is
465 discovered that there are too many code categories. The researcher should:
A. discard the coding and start again.
B. reformulate the research problem to match the code categories.
C. recode.
D. collapse the categories.

A 13. Precoding is desirable because it:


460 A. allows data to be keyboarded directly from questionnaires.
Chapter 1 The Role of Business Research. 303

B. reduces the length of questionnaires.


C. eliminates the need for interviewers.
D. increases the depth of statistical analysis.

D 14. “Don’t know” answers in interview records can be coded by:


457 A. using “dont’ know” as a separate data category.
B. eliminating these answers in the tabulation of percentage totals.
C. redistributing these answers into the other categories of the question on a proportionate basis.
D. all of the above

B 15. Code values of _____ and _____ are traditionally given to “don’t know” and “no
459 answer” responses, respectively.
A. 0; 1
B. 8; 9
C. 5; 6
D. 99; 100

B 16. The term refers to a body of facts that are in a format suitable for decision making,
453 whereas are simply recorded measures of certain phenomena.
A. edited facts, coded facts
B. information, data
C. edited facts, informational facts
D. information, coded facts

Fill in the Blank

1. The term refers to recorded measures of certain phenomena.


453
data
Chapter 1 The Role of Business Research. 304

2. The term refers to a body of facts that are in a format suitable for decision making.
453
information

3. A rigorous editing job performed by centralized office staff is called ___ _____.
454
in-house editing

4. The __ book is a book identifying each variable in a study and its position on the
465 input medium; it is used to identify a variable's description, code name, and field.

code

5. In measuring radio listening behavior, checking the call letters of a radio station in a
454 respondent’s diary to make sure that the call letters match possible call letters within that respondent’s
zip code is the process of _____.

editing

6. Determining categories for open-ended questions after the editing process is completed
460 is known as _____ .

postcoding (or coding)

7. ___ coding is the physical activity of transferring the data from the questionnaire or
466 data collection form after the data have been collected

Production
Chapter 1 The Role of Business Research. 305

8. Preliminary editing by a field supervisor, done on the same day as the interview, is
454 called daily __ editing.

field

9. When a telephone interviewer mistakenly interviews someone under voting age,


455 eliminating this interview from the data set is an example of editing for _____.

consistency

10. A(n) is a collection of related fields.


458
record

11. When an editor notices that a respondent who is a top manager in a large corporation
455 has his salary listed at only $15,000, this is an example of checking for _____ _____ responses.

logically consistent

12. The process of identifying and classifying each answer with a numerical score or other
457 character symbol is called .

coding

13. When the average price for a house within a zip code is inserted into a missing data
456 response on a survey, this price is known as a(n) _____ value.
Chapter 1 The Role of Business Research. 306

plug

14. refers to determining a framework for classifying responses to questions where


460 coded categories cannot be established before data collection.

Postcoding

15. When an editor attempts to determine whether a missing response on an interview is


456 either a legitimate “don’t know” response or a “not ascertained” response, this is an example of _____.

coding

16. If an editor finds a missing answer where there can be no missing value, the editor may
456 insert a(n) .

plug value

17. The technical term for an unanswered question on an otherwise complete questionnaire
455 is a(n) .

item nonresponse

18. A(n) is a collection of characters that represent a single type of data.


457
field

19. An accountant's spreadsheet, which is a rectangular arrangement of data into rows and
458 columns, is an example of a(n) .
Chapter 1 The Role of Business Research. 307

data matrix

20. During the coding process a small sample of the replies to a particular question may be
463 tallied, in order to construct coding categories. This is a(n) ____ _____.

test tabulation

21. When an editor attempts to decide whether to recode a survey response in which the
456 respondent has circled both a “3” and a “4” on a rating scale (instead of circling a single response), this
is an example of _____.

coding

22. A(n) __ _____ _____ can read material directly from mark-sensed questionnaires
467 into computer memory.

optical scanning system

23. The final stage in the coding process is the __ _____ stage, during which codes are
470 verified and corrected as necessary.

error checking

24. When the codes for gender are either zero or one, this is an example of codes which are
459 _____.

exhaustive

25. is the process of making data ready for coding and transfer to data storage.
Chapter 1 The Role of Business Research. 308

454
Editing
26. A(n) is a collection of related records.
458
file
Chapter 1 The Role of Business Research. 309

NOTES:

Chapter 20
Basic Data Analysis: Descriptive Statistics

True-False Questions

F 1. The interquartile range is the part of a data distribution that falls into the top 10 percent
489 of responses.

T 2. One of the ways to compare data from an experimental group with data from a control
476 group is to use cross-tabulation.

T 3. Graphic aids prepared by computers are rapidly replacing graphic aids drawn by artists.
487
Chapter 1 The Role of Business Research. 310

T 4. Tabulation, in itself, may answer some research questions.


475

F 5. Good researchers never interpret and analyze data at the same time.
490

T 6. Calculation of a mean is a basic form of descriptive analysis.


475

T 7. The cross-tabulation of two survey questions creates a contingency table.


476

T 8. Elaboration analysis is a complex form of cross-tabulation.


478

T 9. The nature of the research should determine which marginal total should be used as the
477 base for computing percentages.

T 10. The resolution of anything complex into its simplest elements is called analysis.
478

F 11. Index numbers require only an ordinal scale of measurement.


482
T 12. An index number is a score recalibrated to indicate how it relates to a base number.
481

T 13. The elaboration of a cross-tabulation is a form of multivariate analysis.


479
Chapter 1 The Role of Business Research. 311

F 14. Quadrant analysis involves plotting four rating scale questions into eight quadrants on
479 a three-dimensional table.

T 15. In quadrant analysis, when products that are considered of high importance receive a
479 high rating on a performance attribute, this can help to create a positioning strategy for these products.

F 16. Marketing researchers do not distinguish between the terms analysis and
490 interpretation.

T 17. Combining adjacent categories in a rating scale analysis is a form of data


480 transformation.

T 18. The Consumer Price Index is an index number which allows comparisons between one
481 time period and another time period.

F 19. The interquartile range extends from the 33rd percentile to the 66th percentile.
489

T 20. For most projects, statistical analysis begins by reducing the raw data into a summary
473 format.

T 21. Tabulation refers to the orderly arrangement of data in a table.


474

T 22. A contingency table with two rows and three columns is called a 2 x 3 table.
477

T 23. When the tabulation process is done by hand, it is known as tallying.


474
Chapter 1 The Role of Business Research. 312

T 24. An outlier is a data-point which exists outside of the normal range of the data set.
489

T 25. Analyzing the data in a survey that samples both men and women by separating
476 answers into groups or categories based on gender would be a cross-tabulation.

T 26. The first rule for identifying categories for cross-tabulation is that the categories should
476 be related to the research problem.

T 27. Creating cross-tabs on a long survey with every item against every other item is called
479 “a fishing expedition.”

T 28. The logical interpretation of the data and the statistical analysis of the data are closely
490 intertwined in the mind of a researcher.

F 29. In a 2 x 2 contingency table there are two cells.


477

T 30. In a 2 x 2 contingency table there are four cells.


477

F 31. There is one best way to interpret data.


492

T 32. Percentages aid interpretation.


477

T 33. Descriptive analysis refers to the transformation of the raw data into a form that will
473 make them easy to understand and interpret.
Chapter 1 The Role of Business Research. 313

T 34. Typically, describing responses or observations is the first stage of analysis.


473

T 35. Index numbers require a ratio scale of measurement.


482

Multiple Choice Questions

C 1. The arithmetic mean can be properly computed from which of the following scales?
473 A. Nominal
B. Ordinal
C. Interval.
D. None of the above

B 2. If a researcher is attempting to study the relationship between gender and shopping


478 behavior using a cross-tabulation, the percentages should be computed:
A. in the direction of the shopping behavior.
B. in the direction of gender.
C. using the average of the two variables.
D. using the result of multiplying the two variables.

C 3. When a researcher wishes to compare a variable in a given time period with its
481 counterpart in another time period, is often used.
A. a marginal total
B. cross-tabulation
Chapter 1 The Role of Business Research. 314

C. an index number
D. tabulation

B 4. A strong relationship between ice cream sales and the number of drownings at a public
479 beach is an example of:
A. a cumulative percentage relationship.
B. a spurious relationship.
C. an outlier.
D. an interquartile range.

D 5. The study of the relationship between consumers’ ratings of the importance of different
479 features in terms of different brands is an example of:
A. a matrix.
B. analysis of variance.
C. a moderator variable.
D. importance-performance analysis.

B 6. In a percentage cross-tabulation, the total number of respondents or observations may


477 be used as a(n) for computing the percentage in each cell.
A. index
B. base
C. centroid
D. none of the above

A 7. In a percentage cross-tabulation, the conventional rule for determining the direction of


478 the percentages (if the researcher has identified the independent and dependent variables) is to:
A. compute the percentages in the direction of the independent variable.
B. compute the percentages in the direction of the dependent variable.
C. perform an elaboration analysis.
D. none of the above (there is no conventional rule).
Chapter 1 The Role of Business Research. 315

A 8. When a researcher breaks down a cross-tabulation for each level of another variable,
478 the researcher is performing:
A. an elaboration analysis.
B. an index analysis.
C. a spurious analysis.
D. none of the above.

B 9. The process of changing the original form of the data to a format suitable to perform a
480 data analysis is:
A. formatting.
B. data transformation.
C. normalization.
D. none of the above.

A 10. The categories, "strongly agree," "agree," "disagree," and "strongly disagree," were
480 reduced to broader categories: "agree" and "disagree." This is an example of:
A. collapsing the data.
B. minimalism.
C. creating a new variable.
D. none of the above.

A 11. Index numbers require a(n) of measurement.


482 A. ratio scale
B. interval scale
C. nominal scale
D. Any of the above can be used.

C 12. An index number of 120 shows a change from the base number of
482 A. 120 percent.
B. 200 percent.
Chapter 1 The Role of Business Research. 316

C. 20 percent.
D. Cannot be determined with the above information.

B 13. The term refers to making inferences pertinent to the meaning and implications of
490 the research investigation.
A. analysis
B. interpretation
C. evaluation
D. all of the above

C 14. Which of the following statements about descriptive analysis is FALSE?


474 A. For most projects, statistical analysis begins by reducing the raw data into a
summary format.
B. Tabulation refers to the orderly arrangement of data in a table or other summary format.
C. Analyzing results by groups or categories is the technique of tabulation.
D. A frequency table is the arrangement of statistical data in a row and column format.

A 15. Which of the following statements about cross-tabulation analysis is FALSE?


476 A. Cross-tabulation tables are classified according to the number of cells in the
matrix.
B. A spurious relationship is when the apparent relationship between two variables is not
authentic.
C. There are four cells in a 2 x 2 contingency table.
D. The base is the total number of respondents or observations used as a basis for computing
percentages.

C 16. The term refers to the transformation of raw data (by rearranging, ordering, or
473 manipulating) into a form that will make them easy to understand.
Chapter 1 The Role of Business Research. 317

A. inferential statistics
B. univariate statistics
C. descriptive analysis
D. analysis of variance

D 17. Which of the following is NOT a common result of descriptive analysis used to
473 summarize data?
A. calculation of averages such as the mean
B. tabulation of frequency distributions
C. preparation of percentage cross-tabulations
D. test of null hypothesis

C 18. The addition of the respondent’s rating of several Likert scale items to form a total
480 score is an example of:
A. cross-tabulation.
B. bivariate analysis.
C. data transformation.
D. a moderator variable.

D 19. In a rank-ordering by consumers of brand preferences for automobile tires, if the


482 researcher multiplies the frequency by the rank scale by its rank, and then sums these scores to
determine a ranking score for the group of respondents, this is an example of:
A. an analysis of variance.
B. a moderator variable analysis.
C. a spurious relationship.
D. a data transformation.
Chapter 1 The Role of Business Research. 318

C 20. In a contingency table, row and column totals are often called:
476 A. simple tabulations
B. cells
C. marginals
D. boxheads and stubheads, respectively

B 21. A variable is a third variable that, when introduced into a cross-tabulation analysis,
479 alters or has a contingent effect on the relationship between an independent and a dependent variable.
A. matrix
B. moderator
C. categorical
D. marginal

A 22. The horizontal line in a “box and whisker plot” is determined by the:
489 A. median.
B. mode.
C. mean.
D. none of the above.

Fill in the Blank

1. ____ is the transformation of raw data into a form that will make them easy to
473 understand and interpret.

Descriptive analysis

2. A(n) is a simple tabulation that indicates the frequency with which respondents
474 give a particular answer.
Chapter 1 The Role of Business Research. 319

frequency table

3. The cross-tabulation of two survey questions creates a _____ table.


476
contingency

4. A(n) analysis is an analysis of the basic cross-tabulation for each level of another
478 variable, perhaps subgroups of the sample.

elaboration

5. A(n) is a value that lies outside the normal range of a set of data.
489
outlier

6. The interquartile range is the part of the data distribution between the and
489 _ percentiles.

25th, 75th

7. The is the number of respondents or observations that indicate a total; it is used to


477 compute percentages.

base

8. A(n) __ variable is a third variable that, when introduced into an analysis, alters or
479 has a contingent effect on the relationship between an independent variable and a dependent variable.
Chapter 1 The Role of Business Research. 320

moderator

9. A contingency table with four rows and three columns is called a ____ x ____ table.
477
4x3

10. A joint frequency distribution of observations on two or more sets of variables is


476 known as a(n) .

cross-tabulation

11. It is important to remember that all descriptive statistics appropriate for a lower-order
474 scale are also appropriate for scales.

higher-order

12. When tabulation is done by hand it is called .


474
tallying

13. Counting the number of responses to a question and putting them into a frequency
474 distribution is a(n) .

simple tabulation

14. A contingency table with two rows and two columns is called a _____ table.
477
2x2
Chapter 1 The Role of Business Research. 321

15. The results of a cross-tabulation of two variables, such as survey questions, is called
477 a(n) .

contingency table

16. If we organize a set of data by summarizing the number of times a particular value of a
474 variable occurs, we have created a(n) .

frequency distribution

17. A variation of the cross-tabulation table that plots two rating scale questions into four
479 quadrants on a two-dimensional table is called __ analysis.

quadrant

18. A(n) _ ____ ____ plot is a graphic device that represents central tendencies,
489 percentiles, variability, and frequency distributions.

box and whisker

19. The process of making pertinent inferences and drawing conclusions concerning the
490 meaning and implications of research is known as .

interpretation

20. The resolution of anything complex into its simplest elements is known as _____..
478
analysis
Chapter 1 The Role of Business Research. 322

21. Determining a respondent’s age by subtracting his birth year from the current year is an
480 example of _____ _____.

data transformation

22. The orderly arrangement of data in a table or other summary format is .


474
tabulation

23. The process of analyzing results by groups, categories, or classes is .


476
cross-tabulation

24. There is _____ (one/no one) best way to interpret data.


492
no one

Chapter 21
Univariate Statistics

True-False Questions

F 1. Univariate tests involve testing two variables at a time.


498

T 2. Researchers often test univariate statistical hypotheses about population proportions.


512

T 3. Univariate statistical analysis of parameters involves hypothesis testing when the


Chapter 1 The Role of Business Research. 323

498 research focuses on one variable at a time.

T 4. A hypothesis test of a proportion is a statistical test of a hypothesis about a proportion


512 of a population, based on data for a sample from the population.

T 5. The null hypothesis is generally represented by the symbol H0.


499

T 6. The alternative hypothesis is generally represented by the symbol H1.


499

T 7. A hypothesis is an empirically testable statement.


499

F 8. The level of significance gives the probability level that is considered to be too high to
500 support the null hypothesis.

T 9. The true purpose of setting up a null hypothesis is to provide an opportunity to nullify


500 it.

F 10. If the sample size is 125, the sample mean is 32 and the sample standard deviation is
507 2.34, if the population mean is hypothesized to be 34, the z-value is – 8.0.

T 11. The significance level is the critical probability in choosing between the null and the
500 alternative hypothesis.

F 12. If the probability of occurrence of the observed data is greater than the level of
502 significance, the null hypothesis should be rejected.

T 13. One way of looking at the significance level is as a standard or decision rule to
Chapter 1 The Role of Business Research. 324

500 determine if in fact the null hypothesis should be rejected.

F 14. An incorrect decision is made if the null hypothesis is false and the decision made to
504 reject the null hypothesis.

T 15. In hypothesis testing, the "region of rejection" shows those values very unlikely to
501 occur if the null hypothesis is true.

F 16. If you accept the null hypothesis when it is true, you have made a Type I error.
504

F 17. Univariate statistical analysis allows researchers to assess the statistical significance of
498 various hypotheses about two or more variables.

T 18. The type of question the researcher is attempting to answer is a primary consideration
504 for the choice of statistical tests.

T 19. The scale of measurement on which the data are based determines the permissible
505 statistical operations that may be performed.

T 20. Statistically describing the relationship between gross national product and sales
505 volume would require bivariate analysis.

F 21. Data analysis of nominal and ordinal scales typically uses parametric statistical tests.
506

T 22. The major distinction between parametric and nonparametric statistical tests lies in the
506 underlying assumptions about the data to be analyzed.

F 23. Multivariate data analysis is the investigation of two variables at a time.


Chapter 1 The Role of Business Research. 325

505

F 24. Like the Z-distribution, the t-distribution is not influenced by the size of the sample.
508

T 25. When the sample size is large and interval- or ratio-scaled data are being analyzed,
505 researchers generally choose parametric tests.

F 26. If the data are in either ordinal or nominal form, it is appropriate to assume that the
506 sampling distribution is normal in shape.
T 27. Degrees of freedom refers to the number of observations that can be varied without
508 changing the constraints or numbers associated with a numerical system.

F 28. As with the Z-distribution, there is only one t-distribution.


507

T 29. When nominal and ordinal scales are used, nonparametric statistics are typically used.
506

T 30. The chi-square test allows researchers to test for statistical significance in the analysis
510 of frequency distributions.

F 31. The chi-square test requires that a sample be taken to determine the expected
511 frequencies.

F 32. When the sample size is greater than 20, the t-distribution and the Z-distribution are
508 almost identical.

F 33. It is appropriate to test a hypothesis about a mean score when ordinal data are being
501 used.
Chapter 1 The Role of Business Research. 326

T 34. In its simplest form, a hypothesis is a guess.


499

T 35. A hypothesis is an unproven proposition or supposition that tentatively explains certain


499 facts or phenomena.

Multiple Choice Questions

D 1. A Type II error is caused by failing to reject the when the is true.


504 A. alternative hypothesis; null hypothesis
B. significance level; hypothesis
C. Type I error; hypothesis
D. null hypothesis; alternative hypothesis

B 2. Statistically describing the relationship between two variables at one time, such as
505 sales volume and gross national product, requires .
A. univariate data analysis.
B. bivariate data analysis.
C. multivariate data analysis.
D. nonparametric data analysis.

D 3. All of the following are steps involved in calculating the chi-square statistic, EXCEPT:
511 A. Formulate the null hypothesis and determine the expected frequency of each
answer.
B. Determine the appropriate significance level.
C. Calculate the chi-square value.
D. Calculate the sample mean.
Chapter 1 The Role of Business Research. 327

A 4. We conduct when we wish to generalize from a sample about one variable at a


498 time.
A. univariate data analysis.
B. bivariate data analysis.
C. multivariate data analysis.
D. nonparametric data analysis.

B 5. The idea that “there is no difference in buying behavior between males and females in
499 the age group 25-49” is an example of:
A. Type I error.
B. the null hypothesis.
C. Type II error.
D. the alternative hypothesis.

B 6. Parametric statistics are appropriate when:


506 A. the data are nominal data.
B. the sampling distribution is normally distributed.
C. the sample size is small.
D. all of the above.

B 7. The is a symmetrical, bell-shaped distribution that is contingent on sample size. It


506 has a mean of zero and a standard deviation equal to one.
A. ANOVA
B. t-distribution
C. chi-square distribution
D. F-distribution

A 8. When sample size is larger than 30:


508 A. the t-distribution and the Z-distribution are considered to be almost identical.
B. the t-distribution can be used when the data are nominally scaled.
Chapter 1 The Role of Business Research. 328

C. the t-distribution and the sampling distribution of the mean are considered to be almost
identical.
D. none of the above are true.

C 9. The idea that “there is a significant difference in brand preference between males with
499 incomes under $50,000 and males with incomes over $50,000” is an example of:
A. Type I error.
B. the null hypothesis.
C. the alternative hypothesis.
D. Type II error.

A 10. In a rating scale study of customer satisfaction using 5-point Likert scales, the
499 statement: “The population mean is equal to 3.0” is an example of:
A. the null hypothesis.
B. a Type I error.
C. a Type II error.
D. the alternative hypothesis.

B 11. In a rating scale study of customer satisfaction using 7-point rating scales, the
499 statement: “The population mean is not equal to 4.0” is an example of:
A. Type I error.
B. the alternative hypothesis.
C. Type II error.
D. the null hypothesis.

C 12. A hypothesis test that allows for investigation of statistical significance in the analysis
510 of frequency distributions is the
Chapter 1 The Role of Business Research. 329

A. Z-test.
B. t-test.
C. chi-square test.
D. F-test.

C 13. The logic inherent in the chi-square test is to compare the observed frequencies with
511 the
A. sample frequencies.
B. sample mean.
C. expected frequencies.
D. expected chi-square value.

B 14. If the calculated chi-square value is 7.5 and the critical chi-square value for 1 degree of
512 freedom is 3.84, the researcher:
A. would accept the null hypothesis.
B. would conclude the results are statistically significant.
C. would conclude there is no difference between the observed and expected distributions.
D. all of the above.

C 15. The population proportion can be estimated using


512 A. the sample mean.
B. the sample standard deviation.
C. the sample proportion.
D. the confidence interval about the mean.

C 16. A private art museum sponsoring a program of summer art classes for children expects
510 an equal number of boys and girls. A random sample of its list of students shows there are more girls
than boys. The appropriate univariate test for statistical significance is the:
A. Z-test.
Chapter 1 The Role of Business Research. 330

B. t-test.
C. chi-square test.
D. F-test.

A 17. An investigator sampled the gross national product (GNP) for 50 countries. The data
508 are in dollars. The researcher wishes to test the hypothesis that the mean GNP equals $47 billion. The
appropriate statistical test would be the:
A. Z-test.
B. t-test.
C. chi-square test.
D. F-test.

C 18. If the Z-statistic produces a value for Z of 2.45 when the critical value for Z at the .05
510 level is 1.96, the decision should be:
A. to accept the null hypothesis.
B. that the degrees of freedom are 12.
C. to reject the null hypothesis and accept the alternative hypothesis.
D. none of the above.

B 19. In statistical theory an unproven proposition or supposition that tentatively explains


499 certain facts or phenomena is:
A. the univariate question.
B. a hypothesis.
C. the direct result of exploratory research.
D. the null opportunity.

C 20. When _____ data are used and the sample size is _____, the researcher should use
506 _____ tests.
A. ordinal; small; parametric
B. nominal; large; parametric
Chapter 1 The Role of Business Research. 331

C. interval; large; parametric


D. interval; small; parametric

B 21. As sample size _____, the t-distribution becomes increasingly _____ to the Z-
508 distribution.
A. increases; dissimilar
B. increases; similar
C. decreases; similar
D. none of the above

C 22. If the sample size is 100 and the sample proportion is 0.45, if the population proportion
512 is hypothesized to be 0.40, the z-value is:
A. 2.01
B. 1.56
C. 1.01
D. none of the above

C 23. If the t-statistic produces a value for t of 2.56 when the critical value of t is 1.96, the
510 decision should be:
A. to accept the null hypothesis.
B. to accept both the null hypothesis and the alternative hypothesis.
C. to reject the null hypothesis and accept the alternative hypothesis.
D. to reject both the null hypothesis and the alternative hypothesis.

C 24. H0: = 3.0 is an example of:


501 A. the alternative hypothesis.
B. the critical value of the lower limit.
C. the null hypothesis.
D. none of the above.
Chapter 1 The Role of Business Research. 332

A 25. Hypothesis tests are designed so that the hypothesis will be rejected.
499 A. null
B. alternative
C. alpha
D. beta

B 26. The region of ___ shows those values that are very unlikely to occur if the null
502 hypothesis is true, but relatively probable if the alternative hypothesis is true.
A. acceptance
B. rejection
C. nonparametric
D. alternatives

D 27. If the observed value of t is 1.54 when the critical value of t is 1.96, the decision should
503 be:
A. to reject the null hypothesis and accept the alternative hypothesis.
B. to accept both the null hypothesis and the alternative hypothesis.
C. to reject both the null hypothesis and the alternative hypothesis.
D. to accept the null hypothesis.

B 28. What type of error is made when the null hypothesis is false, but is not rejected?
504 A. Type I
B. Type II
C. Type III
D. sampling error
Chapter 1 The Role of Business Research. 333

A 29. In the legal profession, a Type I error would be equivalent to:


504 A. sending an innocent man to prison.
B. setting a guilty party free.
C. flipping a coin to determine if a man goes to prison or not.
D. none of the above.

C 30. If a decision rule has been set at the significance level of .05, then in the long run the
502 probability of making an erroneous decision when the null hypothesis is true:
A. will be more than 95 times in 100.
B. will be more than 995 times in 1,000.
C. will be fewer than 5 times in 100.
D. will be fewer than 5 times in 1,000.

C 31. We conduct ___ data analysis when we wish to investigate more than two variables
505 at a time.
A. univariate
B. bivariate
C. multivariate
D. nonparametric

C 32. The following formula represents the method for calculating the ______ .
511
2
( Oi - E i )

Ei

A. Z-test.
B. F-test.
C. Chi-square test.
Chapter 1 The Role of Business Research. 334

D. none of the above.


Fill in the Blank

1. A family of symmetrical, bell-shaped distributions with a mean of zero and a unit


506 standard deviation, used when the population standard deviation is unknown, is called a(n) .

t-distribution

2. An error caused by failing to reject the null hypothesis when the alternative hypothesis
504 is true is called .

Type II error

3. When data are either ordinal or nominal and when it is not assumed that the population
506 is normal, hypothesis tests are utilized.

nonparametric

4. When sample size is larger than 30, the t-distribution and Z-distributions are
508 approximately .

equal

5. A statement about the status quo is known as the _____ hypothesis.


499
null

6. When a 5-point rating scale is used, the statement: “The population mean is equal to
501 3.0” is an example of a(n) _____ hypothesis.
Chapter 1 The Role of Business Research. 335

null

7. If we have a sample mean that is based on a sample of 12, we can determine a


507 t-distribution using degrees of freedom because d.f. = .

11

8. A statement about a status quo that asserts that any change from what has been thought
499 to be true will be due entirely to random error is called a(n) ___ hypothesis.

null

9. A univariate hypothesis test using the t-distribution, used when the population standard
506 deviation is unknown and the sample size is small, is called a(n) .

t-test

10. The two major groupings of statistical procedures are __ statistics and __
505 statistics.

parametric; nonparametric

11. The shape of a t-distribution is influenced by its .


508
degrees of freedom

12. When a 7-point rating scale is used, the statement: “The population mean is not equal
501 to 4.0” is an example of a(n) _____ hypothesis.
Chapter 1 The Role of Business Research. 336

alternative

13. The values that lie exactly on the boundary of the region of rejection are the __
502 values.

critical

14. If the researcher wants to investigate the relationship between gross national product,
505 sales volume, and number of salespeople, ther researcher will conduct .

multivariate data analysis

15. Hypothesis testing in which the research focuses on one variable at a time is __
498 statistical analysis.

univariate

16. A test that statistically determines significance in the analysis of frequency


511 distributions is called a(n) ___.

chi-square ( ) test

17. A statement about a status quo that asserts that any change from what has been thought
499 to be true will be due entirely to random error is represented by the symbol _____ .

H0
18. A statement that indicates the alternative hypothesis is represented by the symbol .
499
H1
Chapter 1 The Role of Business Research. 337

19. A Z-distribution can be used if the sample size from the population is at least .
508
30

20. If observed frequencies exactly equal expected frequencies, the chi-square value would
511 equal .

21. Calculation of the statistic allows us to determine if the difference between the
511 observed frequency distribution and the expected frequency distribution can be attributed to sampling
variation.

chi-square

22. If a production manager studies the output produced over a 15-day period, the degrees
508 of freedom for this study would be _____.

14

23. If the observed value for Z is 1.25 when the critical value for Z is 1.96, the decision
510 should be to _____ the null hypothesis.

accept

24. If the observed value for t is 1.89 when the critical value for t is 1.96, the decision
510 should be to _____ the null hypothesis.
Chapter 1 The Role of Business Research. 338

accept

25. If the null hypothesis is: “The population mean is equal to 3.0,” the alternative
501 hypothesis is _____.

The population mean is not equal to 3.0

26. If the null hypothesis is: “There is no difference in buying behavior between males
499 and females,” the alternative hypothesis would be _____.

There is a significant difference in buying behavior between males and females.


27. If the null hypothesis is rejected, we say we cannot reject the alternative hypothesis.
499 Loosely stated, we say we the alternative hypothesis.

accept

28. The Greek symbol refers to the level of significance.


500
alpha
29. If the observed t-value is 2.45 and the critical t-value in the table is 1.96, you should
510 ______ (reject/accept) the null hypothesis.

reject

30. A business research professor wishes to determine the mean age of his class of 200
509 students is 19 years with 95 percent confidence. A sample of 15 students reveals the following data:

mean = 20.5, standard deviation = 0.4, critical Z = 2.145. It may be concluded, with 95 percent
confidence, that the mean age of the professor's students is approximately between and .
Chapter 1 The Role of Business Research. 339

18.78; 19.22

31. When we say that the results of a hypothesis test are statistically significant, we will
502 reject the hypothesis.

null

32. If the results of a statistical test have the probability of occurring 3 percent of the time,
502 and we have selected the .05 level for our hypothesis test, are the results statistically significant?
(yes/no)

yes

33. An error caused by rejecting the null hypothesis when it is true is called .
504
Type I error

34. When data are interval-scaled, procedures based on the assumption that the data are
506 drawn from populations with normal distributions are termed hypothesis tests.

parametric

Chapter 22
Bivariate Analysis: Tests of Differences

True-False Questions

T 1. In bivariate statistics, the type of measurement scale influences the type of test that is
Chapter 1 The Role of Business Research. 340

522 appropriate.

T 2. Tests of differences between proportions of two groups are a type of bivariate statistics.
527

T 3. ANOVA stands for analysis of variance.


530

T 4. The (chi-square) test allows us to conduct tests for statistical significance in the
522 analysis of frequency distributions.

T 5. In a chi-square ( ) test, it is appropriate to use categorical data on variables such as


522 sex, education, or yes-no answers.

T 6. Before a chi-square value for a 2 x 2 contingency table can be calculated, the


523 researcher must first identify an expected distribution for the contingency table.

F 7. In a chi-square test of a contingency table, the number of degrees of freedom equals R


523 (C + 1)(n - 1).

T 8. Proper use of the chi-square test requires that each expected cell frequency have a
524 value of at least five.

F 9. Proper use of the chi-square test requires that each expected cell frequency have a
524 value that exceeds 30.

T 10. The z-test may be used to test a hypothesis that the proportions of two groups will be
527 significantly different for two independent groups.
Chapter 1 The Role of Business Research. 341

T 11. Measures of association are an example of bivariate statistics.


520

F 12. ANOVA may be used to test a null hypothesis about the differences among sample
530 means when the researcher has three or more samples.

F 13. In an F-test, if the calculated value of F exceeds the tabular value of F, the null
533 hypothesis should be accepted.

T 14. If the population standard deviation is unknown and the sample sizes are small, the
524 appropriate test of mean differences is a t-test.

T 15. In the classic experimental design, researchers conduct tests of similarities between
520 subjects in the experimental group and subjects in the control group.

T 16. In a test of statistical significance between men and women, the question being asked
522 is: “If the difference between men and women due to chance or random sampling error, or is the
difference more than sampling variation?”

T 17. A contingency table uses categorical variables.


523

T 18. In testing the difference between the proportions of two groups, the value of the
528 difference between the population proportions of these two groups is normally assumed to be zero.

T 19. Testing the null hypothesis that the population proportion for group one equals the
527 population proportion for group two is conceptually the same as the t-test of two means.

T 20. To conduct a Z-test for differences of proportions, the sample size must exceed 30
527 observations in each of the two groups.
Chapter 1 The Role of Business Research. 342

F 21. To calculate a pooled estimate of the standard error of differences in proportions, the
528 sizes of the two samples must be equal.

T 22. A one-way ANOVA may be used to compare the means of three or more groups.
530

T 23. When there are three levels of an independent variable, the null hypothesis is that all
530 the means are equal.

T 24. The F-test employs comparisons of variances of two groups to test a hypothesis.
530

F 25. A one-way ANOVA can only have one level of the independent variable.
530

F 26. Although the chi-square test is very useful for analyzing relationships among variables
522 in a data set, it does not allow researchers to conduct tests for significance.

F 27. Categorical data on variables such as sex or education cannot be statistically analyzed.
522

T 28. If the calculated value of chi-square is smaller than the tabular value of chi-square, the
524 null hypothesis should not be rejected.

T 29. The chi-square formula used in univariate problems is identical with the one used in
523 the bivariate case, except the degrees of freedom are calculated differently.

Multiple Choice Questions


Chapter 1 The Role of Business Research. 343

D 1. In the classic experimental design, researchers conduct between subjects assigned


520 to the experimental group and subjects assigned to the control group.
A. univariate statistical tests
B. within-group variance tests
C. cell variance tests
D. tests of differences

B 2. A bank conducts a t-test for difference of means to compare annual salaries of


524 professional male and professional female employees. A key question to be answered is:
A. How long has the bank been in business?
B. Is the difference between the means of male and female employees statistically significant?
C. Is the difference in proportion of those with high incomes between survey respondents and
survey nonrespondents statistically significant?
D. None of the above would need to be answered.

C 3. When the means of more than two groups or populations are to be compared on one
530 independent variable, is the appropriate statistical tool.
A. the t-test
B. two-way ANOVA
C. one-way analysis of variance
D. a pooled estimate of the standard error

B 4. In a t-test, if the calculated value of t is greater than the tabular value of t:


526 A. use a different technique because the t-test is inappropriate.
B. reject the null hypothesis.
C. accept the null hypothesis.
D. calculate the corresponding chi-square values.
C 5. When testing the difference between two proportions, the null hypothesis is usually
527 that:
Chapter 1 The Role of Business Research. 344

A. proportion 1 is greater than proportion 2.


B. the population proportions are unequal.
C. the population proportions are equal.
D. the pooled proportion equals the pooled variance.

D 6. The greater the value of F:


534 A. the greater the sample size.
B. the greater the total variation.
C. the greater the probability of accepting the null hypothesis.
D. the greater the probability of rejecting the null hypothesis.

B 7. The F-test is frequently used in conjunction with:


530 A. chi-square analysis.
B. analysis of variance.
C. t-test of three means.
D. Z-test of three proportions.

D 8. When the data relating to two variables are simultaneously tabulated by categories, the
522 simplest procedure to use is:
A. ANOVA.
B. regression.
C. correlation.
D. cross-tabulation.

A 9. The null hypothesis of "equality of population means" will be rejected in the ANOVA
534 procedure if:
A. between-group variance is significantly larger than within-group variance.
B. within-group variance is significantly larger than between-group variance.
C. total variance is significantly larger than within-group variance.
D. total variance is significantly larger than between-group variance.
Chapter 1 The Role of Business Research. 345

C 10. If 50 of 65 men are aware of your company’s brand, while 10 of 35 women are aware
523 of your company’s brand, the expected value for women-unaware is:
A. 39.
B. 26.
C. 14.
D. none of the above.

C 11. The appropriate bivariate analysis when the data are ratio-scaled, the sample size for
530 each group is greater than 30, and there are three groups is:
A. t-test.
B. chi-square test.
C. analysis of variance.
D. Z-test.

D 12. When there are three levels of an independent variable, the null hypothesis is that:
530 A. the sum of the means is a minimum value.
B. mean 1 > mean 2 > mean 3.
C. the means are all unequal to each other.
D. the means are all equal.

B 13. The analysis of variance (ANOVA) technique is used to make inferences about
530 population:
A. variances
B. means
Chapter 1 The Role of Business Research. 346

C. proportions
D. all of the above

C 14. If 50 of 65 men are aware of your company’s brand, while 10 of 35 women are aware
523 of your company’s brand, the expected value for men-unaware is:
A. 21.
B. 39.
C. 26.
D. none of the above.

B 15. The appropriate bivariate analysis when the data are nominal-scaled, the sample size
522 for each group is greater than 30, and there are two groups is:
A. t-test.
B. chi-square test.
C. analysis of variance.
D. none of the above.

D 16. The appropriate bivariate analysis when the data are ratio scaled, the sample size for
525 each group is less than 30, and there are two groups is:
A. F-test.
B. chi-square test.
C. analysis of variance.
D. t-test of means.

A 17. The appropriate bivariate analysis when the data are ratio scaled, the sample size for
524 each group is 24, and there are two groups is:
Chapter 1 The Role of Business Research. 347

A. t-test of means.
B. chi-square test.
C. analysis of variance.
D. none of the above.

B 18. A survey among Democrats, Republicans, and independent voters asked, "How often
522 do you contribute to candidates of an opposition party?" The answers were always, sometimes, and
never. The appropriate bivariate statistical test of differences is:
A. t-test.
B. chi-square test.
C. analysis of variance.
D. Z-test.

D 19. In a survey of 400 sailboat owners, the proportion of respondents with an annual
527 income of $50,000 and over was 10 percent. A follow-up check of 50 nonrespondents indicated the
proportion of nonrespondents with incomes of $50,000 and over was 20 percent. The appropriate
bivariate statistical test is:
A. t-test.
B. chi-square test.
C. analysis of variance.
D. Z-test of proportions.

A 20. Suppose that Group 1 has 25 men with a mean of 8.2 and a standard deviation of 4.6
526 while Group 2 has 18 women with a mean of 5.3 and a standard deviation of 2.4. The standard error of
the difference between the means is approximately:
A. 1.19.
B. 1.42.
C. 1.67.
D. none of the above.

A 21. If a researcher asked the question: "Is there a difference between men and women on
Chapter 1 The Role of Business Research. 348

524 the average amount of money in their billfolds?" the appropriate statistical test would be:
A. t-test of independent samples.

B. (chi-square) test using a contingency table.

C. one-way (chi-square) test.


D. none of the above.

B 22. The null hypothesis in a t-test of means of two independent samples would be:
524 A. X1 = X2

B.
C. t1 = t2
D. Any of the above would be acceptable.

C 23. If Group 1 has 20 men and p = .30 while Group 2 has 16 women and p = .40, the
528 standard error of the difference of proportions is approximately:
A. 0.025.
B. 0.28.
C. 0.16.
D. none of the above.

D 24. To use the t-test of two means, which of the following conditions does NOT have to
524 occur?
A. Both samples are drawn from normal distributions.
B. Variances of the two populations are equal.
C. The data are interval-scaled.
Chapter 1 The Role of Business Research. 349

D. Means of the two distributions are equal.

C 25. In a comparison between two sample means, the null hypothesis about differences
524 between groups using a t-test is normally stated as:

A.

B.

C.

D.

A 26. If the mean square within groups is 2.3 and the mean square between groups is 10.4,
533 the F-ratio is approximately:
A. 4.5.
B. 0.2.
C. 23.9.
D. none of the above.

B 27. In a comparison of an observed joint-frequency distribution with an "expected" joint


522 frequency distribution, the "goodness of fit" can be measured by:
A. cross-tabulation.
B. chi-square.
C. comparison of sampling distributions.
D. relative averages.

C 28. In the application of chi-square analysis, if the calculated chi-square value is larger
524 than the tabular chi-square value, the researcher should:
A. check for a math error.
Chapter 1 The Role of Business Research. 350

B. accept the null hypothesis.


C. reject the null hypothesis.
D. use a different technique since chi-square is inappropriate.

A 29. When using the chi-square analysis in bivariate problems, degrees of freedom are
523 calculated as:
A. (R - 1)(C - 1).
B. R x C+ 1.
C. (R + 1)(C + 1).
D. none of the above.

D 30. When using the chi-square technique in a bivariate application, which of the following
522 forms of data should be used?
A. means
B. variances
C. standard deviations
D. raw frequencies

B 31. If the F-ratio is 2.3 while the critical value of F is 3.4 in the table, you should:
533 A. reject the null hypothesis that the group means are equal.
B. accept the null hypothesis that the group means are equal.
C. reject the null hypothesis that the group means are not equal.
D. accept the null hypothesis that the group means are not equal.

B 32. If a researcher asked the question: "Is there a difference between men and women on
523 awareness of a brand (aware or unaware)," the appropriate statistical test would be:
A. t-test of independent samples.

B. (chi-square) test using a contingency table.

C. one-way (chi-square) test.


Chapter 1 The Role of Business Research. 351

D. none of the above.

D 33. Which of the following is NOT required before calculating a pooled standard error of
526 the difference between sample means?
A. Samples must be independent.
B. Population variances must be equal.
C. Interval data.
D. All of the above are required.

B 34. The number of degrees of freedom for a t-test of the difference between two sample
526 means would be calculated as:
A. d.f. = (R - 1)(C - 1).
B. d.f. = (sample size for Group 1 + sample size for Group 2) - 2.
C. d.f. = the number of samples.
D. d.f. = (the size of the largest sample) - 1.

B 35. The formula below represents the method for calculating the ______ .
522
2
( Oi - E i )

Ei

A. Z-test.
B. F-test.
C. Chi-square test.
D. none of the above.
Chapter 1 The Role of Business Research. 352

Fill in the Blank

1. Another name for a cross-tabulation is a _____ table.


522
contingency

2. The _____ test tests the “goodness of fit” between the observed distribution and the
522 expected distribution.

chi-square

3. In the chi-square test, the calculation of the expected values _____ (does/does not) use
523 the observed number of respondents in each cell of the contingency table.

does not

4. A(n) is a joint frequency distribution of observations on two or more sets of


522 variables.

cross-tabulation

5. The variability of group means about a grand mean is called the sum of squares __
533 groups.

between

6. The -ratio is calculated by taking the ratio of the mean square between groups to the
534 mean square within groups.

F
Chapter 1 The Role of Business Research. 353

7. If we use the t-test for differences of means, we assume the two samples are drawn
524 from distributions and the of the two populations are equal.

normal, variances

8. For the t-test for the differences of means, we assume __ data.


524
interval

9. The null hypothesis about differences between groups, normally stated, is ____.
524
population mean #1 equals population mean #2

10. In the chi-square test for two variables, the degrees of freedom are equal to _____.
523
(R - 1)(C - 1)

11. A(n) of the standard error is a better estimate of the standard error than one
525 based on the variance from either sample.

pooled (or combined) estimate

12. In a test of two means, degrees of freedom are calculated as follows: d.f. = n - k where
526 n= and k = .

total sample size of both groups combined; number of groups

13. The null hypothesis in a test comparing two proportions would be as follows: .
527
Chapter 1 The Role of Business Research. 354

population proportion #1 equals population proportion #2

14. The comparison between the observed sample proportions p1 and p2 requires a(n)
527 _____ -test statistic to test a null hypothesis.

15. In the classic experimental design, researchers conduct between subjects


520 assigned to the experimental group and subjects assigned to the control group.

tests of differences

16. The formula represents the method for calculating the __ .


523
chi-square statistic

17. In the chi-square formula, Oi represents the ___ .


523
observed frequency in the ith cell
18. In the chi-square formula, Ei represents the ___ .
523
expected frequency in the ith cell

19. In the chi-square formula, represents the ___ .


523
chi-square statistic

20. In the F-test, if we compare the variance within groups to the variance of the group
530 means about a _____ ____ , we can determine if the means are significantly different.
Chapter 1 The Role of Business Research. 355

grand mean

21. In the chi-square test, the expected cell frequency needs to be at least _____.
524
5

22. The ______ test is a way to statistically determine significance in the analysis of
522 frequency distributions.

chi-square

23. A(n) is a section of a table representing a specific combination of two variables or a


523 specific value of a variable.

cell

24. The one-way ANOVA technique is called "one-way" because ____ .


530
there is only one independent variable

25. Tests of differences between two variables at a time are known as .


520
bivariate statistics

26. An analysis of the effects of one treatment variable on an interval-scaled dependent


530 variable in three or more groups is called ___ .

analysis of variance (ANOVA)


Chapter 1 The Role of Business Research. 356

27. The t-test for the difference of means assumes that you have _____ data.
524
interval

28. In bivariate statistics, both the __ _____ _____and the number of __ ____ ____
522 ____ influence the type of test that can be used

type of measurement; groups to be compared

29. When the means of more than two groups are to be compared, is the appropriate
530 statistical tool.

ANOVA (analysis of variance)

30. In a problem where the researcher compares women who are working full-time outside
530 the home, part-time outside the home, and working only within the home, on their willingness to
purchase a microwave oven (yes or no), the independent variable may be said to have levels.

three

31. In the analysis of variance procedure, the appropriate test statistic is the -test.
530
F

32. The F-test utilizes measures of sample variance rather than sample standard deviation
530 because standard deviations cannot be .

summed
Chapter 1 The Role of Business Research. 357

33. If the observed value of t is 1.84 and the critical value of t in the table is 1.96, you
526 should _____ the null hypothesis.

accept

34. The total sum of squares in ANOVA may be partitioned into two parts: Within-groups
530 sum of squares and the ____ sum of squares.

between-groups

35. if Group 1 has p = .35 and Group 2 has p = .40 and the standard error of the difference
529 between proportions is 0.068, the z-test value is approximately _____.

-0.735

36. A Z-test for differences of proportion requires a sample size greater than in each
527 group.

30

37. If the population standard deviation is unknown and the sample size small, the
525 __ should be chosen over the __ .

t-test, Z-test

Chapter 23
Bivariate Analysis: Measures of Association
Chapter 1 The Role of Business Research. 358

True-False Questions

F 1. The following formula represents the calculation of the least-squares method of


551 regression analysis:

F 2. The above formula in question #1 represents the calculation of the coefficient of


555 determination.

T 3. The above formula in question #1 represents the calculation of the correlation


551 coefficient.

T 4. The type of measurement scale used will influence the choice of an appropriate
551 measure of association.

T 5. The Pearson product-moment correlation coefficient assumes that both variables are
551 measured on an interval- or ratio-scale.

F 6. A chi-square test between a measure of price consciousness and a measure of brand


550 awareness will provide information concerning the strength of the relationship.

T 7. The correlation coefficient is a statistical measure of the covariation between two


553 variables.

F 8. The correlation between variable X and variable Y is seldom identical to the


551 correlation between variable Y and variable X.
Chapter 1 The Role of Business Research. 359

T 9. Simple correlation analysis is the most popular technique in business to indicate the
551 relationship between two variables.

T 10. The coefficient of determination measures that part of the total variance of variable Y
555 that is accounted for by knowing the value of variable X.

T 11. It is always possible to calculate the values on the main diagonal in a correlation matrix
555 without using any statistical formula.

T 12. A t-test may be performed using correlation coefficients.


556

T 13. Linear regression may be used to measure the association between two variables.
556

F 14. The major characteristic of the least squares line is that it passes through all the data
557 points in a scatter diagram.

F 15. When variables are not causally related, they cannot be statistically related.
555

F 16. As a general rule, statisticians assume that a high degree of correlation implies
553 causation.

T 17. As a general rule, statisticians do not assume that a high degree of correlation implies
553 causation.

T 18. To draw a regression line on a scatter diagram, you need to plot only two predicted
561 values of Y.
Chapter 1 The Role of Business Research. 360

T 19. A researcher wishes to predict the sales for a retail store. If a least squares line cannot
562 be determined, the best sales prediction would be average sales of all retail stores.

T 20. Sales forecasts are a common use of regression analysis in business.


550

T 21. The unexplained variation in linear regression is the same as the residual.
563

T 22. The coefficient of determination reflects the proportion of variation in the dependent
555 variable explained by the independent variable.

Multiple Choice Questions

C 1. The following formula represents the calculation for:


551

A. the beta coefficient.


B. the coefficient of determination.
C. the correlation coefficient.
D. the sample means of X and Y.
Chapter 1 The Role of Business Research. 361

B 2. If the number of babies born is used to predict the unit sales of baby carriages, the
550 number of babies born is the _____ variable and the unit sales of baby carriages is the _____ variable.
A. dependent; independent
B. independent; dependent
C. spurious; independent
D. dependent; spurious

D 3. Which of the following values of the correlation coefficient would indicate a STRONG
553 INVERSE RELATIONSHIP between variables?
A. + .25
B. +.05
C. 0
D. -.92

C 4. A correlation coefficient of zero would indicate that:


551 A. a math error has occurred.
B. there is a perfect positive linear relationship between variables.
C. the variables are independent.
D. another sample should be drawn.

B 5. If the simple correlation coefficient were multiplied by itself, the result would be
555 called:
A. nonsense.
B. the coefficient of determination.
C. the coefficient of correlation.
D. a spurious correlation.

C 6. The main diagonal in a correlation matrix will consist exclusively of correlations equal
Chapter 1 The Role of Business Research. 362

555 to:
A. zero.
B. positive values between zero and 1.00.
C. 1.00.
D. positive values greater than 1.00.

C 7. The least squares method generates a line that:


559 A. connects all points in a scatter diagram.
B. minimizes each of the deviations between actual values and predicted values.
C. minimizes the sum of the squared deviations between actual values and predicted values for
the dependent variable.
D. minimizes the sum of the squared predicted values.

C 8. The correlation coefficient, r, ranges from _____ to _____.


551 A. zero; +1.0
B. zero; -1.0
C. -1.0; +1.0
D. -.50; +.50

D 9. In the formula , a represents:


560 A. the independent variable.
B. the dependent variable.
C. the slope coefficient.
D. the Y-intercept.

D 10. In the following formula, and represent:


551
Chapter 1 The Role of Business Research. 363

A. the beta coefficient.


B. the coefficients of determination.
C. the correlation coefficients.
D. the sample means of X and Y.

C 11. If the correlation between new housing starts and lumber sales is +.60, then ____
555 percent of the variance in lumber sales can be predicted from new housing starts.
A. 60
B. 40
C. 36
D. cannot be determined from the information given

A 12. In the formula , X represents:


560 A. the independent variable.
B. the dependent variable.
C. the slope coefficient.
D. the Y-intercept.

B 13. In the formula , Y represents:


560 A. the independent variable.
B. the predicted value of the dependent variable.
C. the slope coefficient.
D. the Y-intercept.

C 14. In the formula , represents:


560 A. the independent variable.
B. the dependent variable.
C. the slope coefficient.
D. the Y-intercept.
Chapter 1 The Role of Business Research. 364

B 15. If the regression equation is equal to 23.6 - 54.2X, then 23.6 is the _____ while -54.2 is
560 the _____ of the regression line.
A. residual; slope
B. Y-intercept; slope
C. slope; Y-intercept
D. slope; residual

C 16. In the bivariate linear regression, the test for significance is the:
563 A. two-group t-test.
B. chi-square test.
C. F-test.
D. none of the above.

A 17. A chi-square test between a measure of price consciousness and a measure of brand
550 awareness will:
A. show if the variables are related.
B. show the strength of the relationship.
C. be meaningless.
D. none of the above.

Fill in the Blank

1. The __ _____ is a statistical measure of the association between two variables.


551
correlation coefficient
Chapter 1 The Role of Business Research. 365

2. The formula for calculating the correlation coefficient for two variables, X and Y, is:
551

3. The symbol for calculating the coefficient of determination is: ___ .


555
r squared

4. The correlation coefficient ranges from to .


551
+1.0, -1.0

5. If the value of r equals , there is a perfect linear relationship.


551
+1.0 or –1.0

6. If we find that the value of r equals -.6, we know we have a(n) relationship.
553
inverse

7. It is important to remember that correlation does not mean .


553
causation

8. The is the standard form of reporting correlational results.


556
Chapter 1 The Role of Business Research. 366

correlation matrix

9. Although regression and correlation are mathematically related, regression assumes the
556 dependent variable, Y, is linked to the independent or predictor variable, X.

predictively

10. Statistical values designed to represent covariation between variables are __ of


553 ______.

measures; association

11. If we wish to investigate a straight-line relationship of the type , we would


556 use _____ ______ regression.

bivariate linear

12. A(n) is the point at which a regression line intersects the Y-axis.
556
intercept

13. A(n) ___ is the “inclination” of a regression line.


556
slope

14. The ___ method is a mathematical technique ensuring that the regression line will
557 best represent the linear relationship between X and Y.
Chapter 1 The Role of Business Research. 367

least-squares

15. A(n) ___ summary table is a table that presents the results of a regression
563 calculation.

analysis of variance (ANOVA)

16. The difference between the actual value of the dependent variable and the estimated
561 value of the dependent variable in the regression equation is called the .

residual

17. Using bivariate linear regression, we can investigate the relationship between
556 variables that are scaled.

two, interval-

18. In the regression equation, the estimated intercept of the y-axis represents the ___ of
560 the regression line.

Y-intercept

19. In the regression equation, the symbol beta ( ) is referred to as the coefficient.
560
slope

20. The slope data is the change in Y due to a corresponding change in __ .


556
X
Chapter 1 The Role of Business Research. 368

21. A correlation coefficient indicates both the _____ of the linear relationship and the
551 _____ of the relationship.

magnitude; direction

22. The least-squares method mathematically determines the regression line for the
557 observed data.

best fitting

23. The regression line determined by the least-squares method may be used to forecast
556 values of the variable given a value for the variable.

dependent, independent

24. The most popular technique for indicating the relationship of one variable to another is
551 simple ___ analysis.

correlation

25. Covariance is _____ if the values of X and Y have a tendency to deviate in opposite
553 directions.

negative

Chapter 24
Multivariate Analysis

True-False Questions
Chapter 1 The Role of Business Research. 369

T 1. Dependence methods of multivariate analysis include multiple regression analysis and


574 multivariate analysis of variance.

F 2. Dependence methods of multivariate analysis include cluster analysis and


574 multidimensional scaling.

T 3. Interdependence methods of multivariate analysis include factor analysis and


574 multidimensional scaling.

F 4. Interdependence methods of multivariate analysis include multiple discriminant


574 analysis and canonical correlation.

F 5. The following formula represents the F-test for the coefficient of multiple

578 determination:

T 6. The following formula represents the multiple regression equation:

576

F 7. The following formula represents multiple discriminant analysis:

576

T 8. A continuous, interval-scaled dependent variable is required in multiple regression, as


576 it is in bivariate regression.

T 9. Discriminant analysis is a statistical tool for determining the linear combination of


580 independent variables that show the largest differences in group means.

F 10. In general, the goal of factor analysis is to create new, more abstract variables and to
Chapter 1 The Role of Business Research. 370

587 generate as many new, multidimensional factors as possible.

F 11. In analysis of interdependence, the purpose is to predict one variable from a set of
585 predictors.
F 12. If a multivariate technique attempts to predict the dependent variables on the basis of
574 two or more independent variables, then we are trying to analyze interdependence.

T 13. The nature of the data measurement scales will always determine which multivariate
575 technique is appropriate.

F 14. Forecasting the dependent variable "sales" on the basis of numerous independent
574 variables is a frequently investigated problem in the analysis of interdependence.

F 15. A marketing manager attempting to identify profitable market segments might utilize a
589 dependence technique.

F 16. In multiple regression analysis, the typical result of adding independent variables is to
578 be able to explain less of the variation in the dependent variable.

F 17. The goal of factor analysis is to reduce a large number of variables to as many
587 constructs as possible.

F 18. As in canonical correlation, multivariate analysis of variance is used when there are
584 multiple independent variables that are nominally-scaled.

F 19. The correlation coefficient in bivariate regression is the same as the partial coefficient
577 in multiple regression.

F 20. The coefficient of multiple determination indicates the percent of variation in Y


578 explained by the variation in the dependent variables.
Chapter 1 The Role of Business Research. 371

T 21. A dummy variable is a variable in multiple regression that has two or more distinct
579 levels which are coded as 0 and 1.

T 22. Discriminant analysis creates a predictive equation that will produce a


579 better-than-chance assignment of individuals to one of two groups.

Multiple Choice Questions

B 1. The following formula represents the:


576

A. equation for a useful interdependence method.


B. multiple regression equation.
C. multiple discriminant analysis equation.
D. coefficient of multiple determination.
B 2. All of the following are examples of analysis of interdependence EXCEPT:
574 A. factor analysis.
B. multiple regression analysis.
C. cluster analysis.
D. multidimensional scaling.

D 3. MANOVA stands for:


584 A. multiple analysis of variance regression factor analysis.
B. multivariate analysis of valuation factors.
C. multiple determination valencies.
D. multivariate analysis of variance.

A 4. Multiple regression analysis allows for the simultaneous investigation of the effect of
Chapter 1 The Role of Business Research. 372

576 _____ independent variable(s) on _____ dependent variable(s).


A. two or more; one
B. one; one
C. two or more; two or more
D. one; two or more

B 5. To test the results of a multiple regression analysis for statistical significance, a


578 researcher should use the:
A. alpha test.
B. F-test.
C. Z-test.
D. correlation coefficient.

C 6. The purpose of multiple discriminant analysis is:


579 A. the prediction of a continuous variable.
B. the investigation of the relationships among independent variables.
C. the prediction of a categorical variable.
D. the reduction of statistical data relationships to their simplest form.

D 7. A "confusion matrix" is often associated with:


580 A. simple regression.
B. multiple regression.
C. canonical correlation.
D. discriminant analysis.

B 8. The goal of multivariate methods is to give meaning to a set of variables.


574 A. independence
B. interdependence
C. dependence
D. significance testing
Chapter 1 The Role of Business Research. 373

A 9. In a multiple regression equation, the coefficient of each independent variable shows:


577 A. the effect on the dependent variable of a unit increase in the independent
variable.
B. the precision of the estimated value of Y.
C. the amount of explained variation in Y.
D. none of the above.

C 10. When we have two dependent variables and multiple independent variables, is an
584 appropriate statistical technique.
A. multiple regression analysis
B. analysis of variance
C. canonical correlation analysis
D. factor analysis

C 11. If a researcher has a set of variables and suspects that these variables are interrelated in
585 a complex fashion, then may be used to reduce the set of variables to as few constructs as possible.
A. canonical correlation
B. multiple regression
C. factor analysis
D. discriminant analysis

A 12. A typical use of is facilitating market segmentation by identifying individuals who


589 have similar needs, life styles, or responses to marketing strategies.
A. cluster analysis
B. factor analysis
C. discriminant analysis
D. analysis of variance

D 13. In multiple regression, when the coefficient of multiple determination is .64, this
Chapter 1 The Role of Business Research. 374

577 means that the variation in the independent variables accounted for approximately _____ percent of the
variance in the dependent variable.
A. 41
B. 141
C. 36
D. 64

C 14. If a multivariate technique attempts to predict the dependent variables on the basis of
574 two or more independent variables, then we are trying to analyze .
A. independence
B. interdependence
C. dependence
D. significance
D 15. Which of the following is NOT a technique used in the analysis of dependence?
574 A. multiple regression
B. multiple discriminant analysis
C. multivariate analysis of variance
D. multidimensional scaling

Fill in the Blank

1. The multiple regression equation can be written as: .


576

2. In cluster analysis, each cluster should have high internal ________ and high external
589 ________ .

homogeneity; heterogeneity
Chapter 1 The Role of Business Research. 375

3. The purpose of is to classify individuals or objects into a small number of


589 mutually exclusive and exhaustive groups.

cluster analysis

4. The dependent variable in multiple regression is required to be a(n) ___ scale.


576
interval

5. A(n) variable in multiple regression is the term for a variable that has two or more
579 distinct levels which are coded as 0 and 1.

dummy

6. The dependent variable in multiple discriminant analysis is always a(n) scaled


579 variable.

categorically

7. A multivariate technique where the researcher's purpose is to classify objects by a set


579 of independent variables into two or more mutually exclusive categories, is __ _____ analysis.

multiple discriminant
8. In factor analysis, is a measure of the percent of a variable's variation that is
588 explained by the factors.

communality

9. To determine if the discriminant analysis can be used as a good predictor, the


Chapter 1 The Role of Business Research. 376

580 researcher inspects information provided in the matrix.

confusion

10. __ _____ analysis is a technique used when the researcher has two dependent
584 variables and multiple independent variables.

Canonical correlation

11. In the formula


578
SSr = sum of squares due to regression
SSe = error sum of squares
k =
n =
F =

k = number of independent variables


n = number of respondents or observations
F = F-test

12. The percentage of variation in the dependent variable that is explained by the variation
578 in the independent variables is known as the coefficient of _____ _____.

multiple determination

13. Multivariate statistical methods allow the effects of _____ (one/more than one)
574 variable to be considered at one time.
Chapter 1 The Role of Business Research. 377

more than one

14. The purpose of canonical correlation is to __ . (Answer could be several words).


584
maximize the correlation between two linear combinations of variables

15. The purpose of discriminant analysis is to . (Answer could be several words).


579
predict the probability of objects or individuals belonging in two or more mutually exclusive categories,
based on several independent variables

16. The purpose of multiple regression is to . (Answer could be several words).


576
simultaneously investigate the effect of several independent variables on a dependent variable

17. When a bank loan officer is attempting to answer the question: “Will this applicant be
580 likely to be a good credit risk based on his age, income, and marital status?”, this is an example of _____
analysis.

discriminant

18. In factor analysis a (n) __ _____ is a measure of the importance of a variable in


588 measuring a factor.

factor loading

19. Factor analysis may reduce the problem of _____ in multiple regression.
588
multicollinearity
Chapter 1 The Role of Business Research. 378

20. There are two basic groups of multivariate techniques: methods and methods
574
dependence; interdependence

21. Multiple regression and multiple discriminant analysis analysis are both methods.
574
dependence

22. Factor analysis and cluster analysis are both methods.


575
interdependence

23. The term analysis of ___ collectively describes any multivariate statistical technique
575 that attempts to give meaning to a set of variables or seeks to group things together.

interdependence

24. The technique of allows for the simultaneous investigation of the effect of two
576 or more independent variables on a single-interval scaled dependent variable.

multiple regression

25. In multiple regression, the coefficient of __ _____ indicates the percentage of


578 variation in Y explained by the variation in the independent variables.

multiple determination, R2

26. When a researcher is attempting to select “similar test market cities” based on their
Chapter 1 The Role of Business Research. 379

589 population size, income, and consumption of a manufacturer’s product, this is an example of _____
analysis.

cluster

27. The purpose of __ _____ is to summarize the information contained in a large


585 number of variables into a smaller number of factors.

factor analysis

28. One interdependence method, , is a term given to a body of techniques used to


589 identify objects or individuals that are similar with respect to some criterion.

cluster analysis

Chapter 25
Communicating Research Results: Report, Presentation, and Follow-up

True-False Questions

T 1. Every research report is custom-designed for the research project that it summarizes.
600

T 2. Unless a report is truly crucial, a busy reader is not likely to spend much time and
599 effort trying to understand it.

T 3. Communication specialists often suggest preparing an oral report by beginning at the


613 end; i.e., thinking about what you want the client to know at the end of the presentation.
Chapter 1 The Role of Business Research. 380

F 4. A written research report should present only the three or four most important findings;
613 the full summary should be presented in the oral report.

T 5. As the need for formality increases, the report format will include more and more parts.
602

T 6. The general rule for the formality of the research report is to “include all the parts
602 needed for effective communication in the circumstances of the study, and no more than this.”

F 7. The letter of transmittal provides an in-depth summary of the report information.


603

F 8. The summary is NOT a vital part of the report.


603

F 9. It is rare for the summary of a research report to be detached from the report and
604 circulated to managers.

T 10. Any material that is “too technical” or “too detailed” to go in the body should go in the
606 appendix of the research report.
T 11. A graphic aid can be distracting or misleading.
607

T 12. Any graphics used should always be interpreted in the report.


607

F 13. In general, marketing researchers can assume that well-educated managers will
599 understand such technical terms as "eigenvalue" or "hypothesis test."

T 14. A communicator uses a medium to communicate his/her message to the audience.


Chapter 1 The Role of Business Research. 381

598

F 15. The analysis section of the body of the research report should outline the general
606 statistical methods used in the study and should include the findings of the study.

F 16. The analysis section of a research report should constitute the bulk of the report.
606

F 17. Charts should not be used, since people can distort the information by expanding or
607 contracting the vertical and horizontal axes.

T 18. It is becoming a common practice for executive summaries of research reports and the
616 research reports themselves to be posted on a company’s Intranet.

T 19. A line graph may show the relationship of the independent variable to more than one
610 dependent variable. This is a multiple line graph.

T 20. The oral presentation may be as simple as a short conference with the client or sponsor
613 of the research.

T 21. To be effective, an oral presentation should be adapted to the audience.


614

F 22. Research projects proceed according to certain stages (research design, sampling, etc.)
613 and the oral presentation should be a formal report of these stages.

T 23. The message can be defined as "the set of meanings being sent to or received by the
598 audience."

T 24. The medium is the way by which the message is carried or delivered to the audience.
Chapter 1 The Role of Business Research. 382

598

T 25. The communicator and the audience need to have an overlapping field of experience
598 for communication to be possible.
F 26. Communication will always be successful whenever a message is encoded,
598 transmitted, and decoded.

T 27. Problems may occur if researchers assume the reader has all the necessary background
599 information to comprehend the report.

F 28. Managers rarely read the summary even though a majority read the rest of the report.
603

T 29. The summary should be written only AFTER the rest of the report is completed.
604

F 30. The number of words in the summary should be directly proportional to the length of
604 each section of the written report.

T 31. The recommendations in a research report are based on the conclusions of the research
606 study.

T 32. A common mistake in charts is to begin the vertical scale at a point other than zero.
609

F 33. The term research report refers to an oral presentation rather than a written document.
599

Multiple Choice Questions


Chapter 1 The Role of Business Research. 383

C 1. The is a discussion, within the body of a research report, of a project's research


605 design, data collection methods, sampling, fieldwork, and data analysis.
A. table
B. report format
C. research methodology
D. research follow-up

B 2. Which of the following is NOT good advice for an oral presentation?


616 A. Open up your arms to embrace your audience.
B. Repeat the same gestures throughout the presentation, because this will provide a soothing
rhythm for the audience to follow.
C. Drop your arms to your sides when not using them.
D. Avoid quick, jerky gestures.

D 3. The is a recontacting of decision makers or clients after they have had a chance to
618 read a research report.
A. table
B. report format
C. research methodology
D. research follow-up

B 4. In a line graph within a research report, the __ variable is generally shown on the
610 vertical axis; the __ variable is put on the horizontal axis.
A. independent; dependent
B. dependent; independent
C. interdependent; spontaneous
D. spontaneous; dependent
Chapter 1 The Role of Business Research. 384

B 5. The message in a research report is:


598 A. the oral or written report itself.
B. the findings of the research project.
C. the manager's response to the report.
D. none of the above.

C 6. The summary in a research report should include the:


604 A. letter of transmittal.
B. detailed summary of the methodology.
C. objectives.
D. limitations.

B 7. In a research report, detailed calculations should be placed in the _____ of the report.
606 A. summary.
B. appendix.
C. body.
D. general tables.

A 8. The title “fly page” includes the:


603 A. title of the report.
B. name of the preparer.
C. date of release.
D. all of the above.

C 9. Research methodology is explained in the _____ of the research report.


605 A. letter of authorization.
B. introduction.
C. body.
D. summary.
Chapter 1 The Role of Business Research. 385

A 10. In a research report, conclusions are:


606 A. opinions based on the results.
B. suggestions for actions.
C. both A and B.
D. none of the above.

D 11. In a research report, the conclusions and recommendations are presented in the ___
606 in more detail than in the ___ of the report.
A. summary; body
B. summary; analysis
C. analysis; summary
D. body; summary

D 12. All of the following are part of the main body of the typical research report EXCEPT:
605 A. the limitations of the study.
B. the methodology of the study.
C. the conclusions and recommendations of the study.
D. the data collection forms.

B 13. In a research report, comprehensive tables should be located in the ___ of the
607 report.
A. analysis
B. appendix
C. summary
D. all of the above

D 14. In a table within a research report, the __ contains the captions for the columns of
607 the table; the __ those for the rows.
A. title; boxhead
Chapter 1 The Role of Business Research. 386

B. stubhead; boxhead
C. boxhead; title
D. boxhead; stubhead

A 15. A is a graphic aid generally used to present numerical information within a report.
607 A. table
B. report format
C. research methodology
D. research follow-up

B 16. The is the general plan of organization for the parts of a written or oral research
600 report.
A. table
B. report format
C. research methodology
D. research follow-up

Fill in the Blank

1. A(n) is a graphic aid used to translate numerical information into visual form so
607 that relationships may be easily understood.

chart
Chapter 1 The Role of Business Research. 387

2. A(n) is a graphic aid generally used for presenting numerical information,


607 especially when several pieces of information can be systematically arranged in rows and columns.

table

3. In a line graph, the dependent variable is generally shown on the axis and the
610 independent variable on the axis.

vertical, horizontal

4. In a pie chart, each "slice" is proportional to its percentage of the .


609
whole

5. The is a discussion within the body of a report of the research design, data
605 collection methods, sampling techniques, fieldwork, procedures, and data analysis efforts.

research methodology

6. In a research report, data collection forms, detailed calculations, general tables, and the
606 bibliography should appear in the ____ .

appendix

7. The __ __ __ of a research report will list the divisions and subdivisions of


603 the report with page references.

table of contents
Chapter 1 The Role of Business Research. 388

8. In a research report, the __ includes materials of interest only to some readers, or


606 subsidiary materials not directly related to the objectives of the research study.

appendix

9. Name four types of graphic aids: ___, _____, _____, _____.


607
tables, charts, diagrams, maps

10. A(n) __ _____ is useful to show the relationship of one variable to another over
610 time.

line graph

11. A(n) shows the composition of some total quantity at a particular time.
609
pie chart

12. A(n) shows changes in the dependent variable at discrete intervals of the
612 independent variable.

bar chart

13. The process by which we send a message to an audience and then receive feedback
598 about this message is known as the .

communication process

14. A(n) is the presentation of research findings directed to a specific audience to


Chapter 1 The Role of Business Research. 389

599 accomplish a specific purpose.

research report

15. The refers to the general plan of organization for the parts of a written or oral
600 research report.

report format

16. The format of the research report may need to be adjusted depending on the correct
601 level of _____ and the need to change the _____ of the report.

formality; complexity

17. In a formal research report, the _____ page typically precedes the title page.
603
fly

18. The __ _____ is a recontacting of decision makers and/or clients after they have had
618 a chance to read a research report.

research follow-up

19. During the communication process, the communicator will a set of thoughts into
598 a(n) which will be carried by a(n) to an audience who will then it.

encode, message, medium, decode

20. If a research report contains many tables or figures, a list of these should immediately
Chapter 1 The Role of Business Research. 390

603 _____ the table of contents of the report.

follow

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