3 - The Interpretation Of Marketing Data

Question 1

What Are Ways Of Interpreting Marketing Data?
(3 Points)

Answer 1

~ Correlation.

~ Confidence intervals.

~ Extrapolation.

Question 2

What Is Correlation?
(2 Points)

Answer 2

~ Understanding the strength of a relationship, between 2 variables.

~ Always remember that there are many other things which influence the relationship.

Question 3

What Can Correlation Be?
(4 Points)

Answer 3

~ Positive (+1).

~ Negative (-1).

~ Zero (0).

~ Positive or negative, strong or weak.

Question 4

What Does A Correlation Of +1 Mean?
(2 Points)

Answer 4

~ The 2 variables move in the same direction.

~ E.g. As temperature goes up ice cream sales go up.

Question 5

What Does A Correlation Of -1 Mean?
(2 Points)

Answer 5

~ The 2 variables move in opposite directions.

~ E.g. As road tax prices go up the sales of 4x4s goes down.

Question 6

What Does A Correlation Of 0 Mean?
(2 Points)

Answer 6

~ There is no relationship between the factors.

~ E.g. Average rainfall and sales of textbooks.

Question 7

What Are Confidence Intervals?

Answer 7

A range of values, that your fairly sure the value for the population will lie within.

Question 8

What Are Confidence Levels?
(2 Points)

Answer 8

~ How sure you are of the outcome happening.

~ E.g. 95% confidence level, means you are 95% certain.

Question 9

What Factors Affect Confidence Levels?
(3 Points)

Answer 9

~ Sampling technique.

~ Research method.

~ Expertise of the person carrying out and analysing the research.

Question 10

What Is Extrapolation?
(2 Points)

Answer 10

~ Using historical trends, to help forecast future trends.

~ Used to aid decision making.