Can money spent on gifts buy love? Is the gift you purchased for that special someone really appreciated? This was the question of interest to business professors at Stanford University. Their research was published in the Journal of Experimental Social Psychology (Vol. 45, 2009). In one study, the researchers investigated the link between engagement ring price (dollars) and level of appreciation of the recipient (measured on a 7-point scale where 1 = “not at all” and 7 = “to a great extent”). Participants for the study were those who used a popular Web site for engaged couples. The Web site's directory was searched for those with “average” American names (e.g., “John Smith,” “Sara Jones”). These individuals were then invited to participate in an online survey in exchange for a $10 gift certificate. Of the respondents, those who paid really high or really low prices for the ring were excluded, leaving a sample size of 33 respondents.
- a. Identify the experimental units for this study.
- b. What are the variables of interest? Are they quantitative or qualitative in nature?
- c. Describe the population of interest.
- d. Do you believe the sample of 33 respondents is representative of the population? Explain.
- e. In a second designed study, the researchers investigated whether the link between gift price and level of appreciation is stronger for birthday gift-givers than for birthday gift-receivers. The participants were randomly assigned to play the role of gift-giver or gift-receiver. Assume that the sample consists of 50 individuals. Use a random number generator to randomly assign 25 individuals to play the gift-receiver role and 25 to play the gift-giver role.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
EBK STATISTICS FOR BUSINESS AND ECONOMI
Additional Business Textbook Solutions
Business Analytics
Elementary Statistics: A Step By Step Approach
Business Statistics: A First Course (7th Edition)
Intro Stats, Books a la Carte Edition (5th Edition)
Introductory Statistics
Essentials of Statistics, Books a la Carte Edition (5th Edition)
- Exercise 3.2 A three-man board, composed of A, B, and C, has held hearings on a personnel case involving an officer of the company. This officer was scheduled for promotion but, prior to final action on his promotion, he made a decision that cost the company a good deal of money. The question is whether he should be (1) promoted anyway, (2) denied the promotion, or (3) fired. The board has discussed the matter at length and is unable to reach unanimous agreement. In the course of the discussion it has become clear to all three of them that their separate opinions are as follows: • A considers the officer to have been a victim of bad luck, not bad judgment, and wants to go ahead and promote him but, failing that, would keep him rather than fire him. ⚫ B considers the mistake serious enough to bar promotion altogether; he'd prefer to keep the officer, denying promotion, but would rather fire than promote him. ⚫ C thinks the man ought to be fired but, in terms of personnel policy and…arrow_forwardThe goal of the consumer is to maximize the total utility or satisfaction derived from their purchase choices, given the unique budget constraint. To calculate total utility of a given combination of T- shirts and movies, one would use the following approach: Group of answer choices Use utils as a measure of utility, assigning a specific number to T-shirts and movies, and then add those together. For a given combination of T-shirts and movies, survey a group of individuals to determine an average for utils to be assigned to the number of T-shirts and movies. For a given combination of T-shirts and movies, assign a number of utils to that combination. For a given combination of T-shirts and movies, use Google to identify the number of utils associated with the number of T-shirts and movies and then sum them.arrow_forwardOne of the oldest principles of marketing is that sellers may sell features, but buyers essentially buy benefits. This is a distinction sometimes lost on technology ledorganizations, and the service sector is no exception. Recent experience of the UK’s largest telecommunications company, Della’s, illustrates how crucial it is to see service offers in terms of the benefits they bring to customers. The company was aware of extensive research which had found high levels of confusion among purchasers of mobile phones, with a seemingly infinite permutation of features and prices. With four main networks to choose from, dozens of tariffs and hundreds of handsets, it is easy to see why buyers sought a way of simplifying their buying process. Throughout the 1990s, Della’s had positioned its UK network as superior technically to its competitors. Advertising focused on high coverage rates and call reliability.Della’s was the UK's most popular mobile phone operator, with almost eight million…arrow_forward
- Batool, a final year Finance student, has decided to base her research on the relationship between the boss-employee relationships & employee turnover rates. Batool is a part-time student, and divides her time between studying and working in a local accountancy practice. Batool has told her colleagues that the primary goal of her research project is to explain the degree of variability of employee turnover. Batool's rationale for choosing this topic is that several indicators show signs of interrelatedness among supervisory relationships with employees and turnover rates. In addition, she wishes to explore if other factors are contributing more or less to employee turnover variation. After conducting a preliminary research, Batool noticed that the boss's gender may affect the direction of relation between boss- employee relationships & employee turnover. Gender is an example on which of the following variables?* Moderating variable Dependent variable Independent variable Mediating…arrow_forwardRecently the European Community (EC) decided to lower its subsidies to makers of pasta. In deciding by what amount to reduce total subsidies, experiments were carried out for determining the possible reduction in exports, mainly to the United States, that would result from the subsidy reduction. Over a small range of values, economists wanted to test whether there is a positive correlation between level of subsidy and level of exports. A computer simulation of the economic variables involved in the pasta exports market was carried out. The results follow. Assuming that the simulation is an accurate description of reality and that the values obtained may be viewed as a random sample of the populations of possible outcomes, state whether you believe that a positive rank correlation exists between subsidy level and exports level over the short range of values studied Qarrow_forwardxt:Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule she could follow is, "Choose the activity with the highest value" (A). Another rule she could follow is, "Choose the activity with the lowest opportunity cost" (B). Do you think Bong-Cha's choice if she follows rule (A) will be the same as the choice she would make if she followed rule (B)? [another way to think about it, "Is rule (A) identical to rule (B) in a sense that they would both induce the same choice?"].arrow_forward
- I submitted this question earlier and it was rejected because dropdown boxes were not visible. The first dropdown box has 2 choices (increase or decrease), the second has 3 choices (remains unchanged, increase, decrease). Thank youarrow_forwardIs there any graph that can support this answer?arrow_forwardanswer the following questions pleasearrow_forward
- QUESTION 2 You work for a big retail chain that operates in a large number of regional markets and you want to investigate the effect of increased marketing spending on sales. You randomly select half of the markets and increase the marketing budget in these markets by 10%. The rest of the markets are allocated the same marketing budget as before. Then comparing the average sales in the markets with increased marketing budget and average sales in the remaining markets will give an unbiased estimate of the true causal effect of increased marketing spending on sales. True O Falsearrow_forwardFirms in India are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to The Associated Chambers of Commerce and Industry (Assocham) employees use Orkut, Facebook, Myspace, and Linkedin for "romancing" and other purposes. On average, employees spend an hour a day on sites like Facebook. This reduces productivity by 12.5%. Nearly half of office employees accessed Facebook during work time. Some 83% saw nothing wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England banned staff from accessing Facebook on its computers when it was discovered that they spent, on average, 400 hours on the site every month. Analyze the impact on a fall in productivity on costs.arrow_forwardFirms in India are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to The Associated Chambers of Commerce and Industry (Assocham) employees use Orkut, Facebook, Myspace, and Linkedin for "romancing" and other purposes. On average, employees spend an hour a day on sites like Facebook. This reduces productivity by 12.5%. Nearly half of office employees accessed Facebook during work time. Some 83% saw nothing wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England banned staff from accessing Facebook on its computers when it was discovered that they spent, on average, 400 hours on the site every month. Question What is meant by productivity? Analyze the impact on a fall in productivity on costs. Analyze the possible consequences for businesses in India of banning access to Facebook and other social networking sites. Do you think access should be denied?arrow_forward