STUDY GUIDE SOLUTION 1
Theidentification problem refers to the impossibility of identifyingbest estimates of the parameter values in a regression equation.Creating a demand question would require one to identify both priceand quantity components. Goods demanded by consumers have to beprovided by suppliers. The final prices of goods and services aredetermined by market forces of demand and supply rather than byindividual buyers and sellers. All coefficients would be positive,and the date might be located on the right side of the equation.
Market researchis conducted in various ways. Consumer surveys refer to tests carriedout to determine and understand consumer behavior. Such surveysreveal not only the tastes and preferences of consumers but alsotheir buying habits. Consumer clinics refer to events held to educateconsumers about the utility, availability, and reliability of certainproducts. This mostly occurs when a new product is launched into themarket. Market experiments refer to the free products distributed toconsumers on a trial basis. This helps to disseminate any fearsconcerning the safety and application of a certain product.Furthermore, it serves to develop a database of potential clientsespecially from those that provide feedback (Burns & Bush, 2014).Virtual shopping and management refer to the selection of productsfor purchase through online platforms.
Regressionanalysis is a statistical technique used to estimate the relationshipbetween a dependent variable and at least one independent variable.Degrees of freedom are the sum of independent variables within a teststatistic. They are subtracted from the computed statistic so as toeliminate the independent component. This applies to both t-valuesand F-values. In regression, n refers to the number of data pointswhile n shows the number of variables. For both t-tests and F-tests,it is vital to create a null hypothesis that serves as the basis forthe test. If the computed value exceeds a certain threshold, then onecan either reject or accept the null hypothesis (Peters, 2015). TheF-value is obtained as a scalar of the alpha value.
The coefficientof determination refers to the proportion of variance in thedependent variable. This proportion can be directly attributed to theindependent variable. The coefficient measures how well theregression fits the data at hand. Multicollinearity refers to wheremore than one variables can be implied from the other with certainty.Heteroscedasticity is where the range of values defining a variableis different compared to another variable that defines it.Autocorrelation refers to the similarities between values of avariable at different times. A dummy variable is used to representsmall subdivisions of the sample data. The Delphi method employs theuse of expert opinions to generate a consensus view using statisticalmethods. Experience is valuable in forecasting since it uses the pastto dictate future actions. A moving average is used to analyze largedata sets in a systematic manner (Peters, 2015). Barometricforecasting techniques examine the relationship between coincidentaloccurrences and future events.
Burns, A. C., &Bush, R. F. (2014). Marketing research. Boston, US: Pearson.
Peters, E.(2015). Statistics and probability. New York, NY: BritannicaEducational Publishing.