Question

Answer the following statement true (T) or false (F)

Answer 1

False

Answer 2

True

Answer 3

False

Answer 4

Three factors are required to specify sample size:(1) Variance, or heterogeneity, of the population: this refers to the standard deviation of the population. Only a small sample is required if the population is homogeneous. As heterogeneity increases, so must sample size.(2) Magnitude of acceptable error, or the confidence interval: indicates how precise the estimate must be.(3) Confidence level: typically use the 95 percent confidence level. This, however, is an arbitrary decision based on convention; there is nothing sacred about the 0.05 chance level.

Answer 5

Purchasing a new cell phone exemplifies limited problem-solving because cell phones are typically only purchased when a need arises, for example, the phone has become outdated or the battery has died. The consumer typically has some experience with purchasing cell phones and his/her involvement in the purchase falls somewhere in the middle. The consumer will identify a problem, but engage in limited information search and limited evaluation of alternatives. Following these steps, the consumer will make the purchase and over time will determine whether the purchase was a good or bad one--depending on how well the phone operates and whether it satisfies the initial need that drove them to purchasing a new one in the first place.