Economics for Managers Chapter 4 Flashcards
Test Marketing
An approach to analyzing consumer behavior that involves analyzing consumer response to products in real or simulated markets.
Price Experiments
An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market environment.
Targeted Marketing
Selling that centers on defining different market segments or groups of buyers for particular products base on the demographic, psychological, and behavioral characteristics of the individuals.
Multiple Regression Analysis
A statistical technique used to estimate the relationship between a dependent variable and an independent variable, holding constant the effects of all other independent variables.
Cross-sectional Data
Data collected on a sample of individuals with different characteristics at a specific point in time.
Time-series Data
Data collected on the same observational unit at a number of points in time.
Panel Data
Cross-sectional data observed at several points in time.
Simple Regression Analysis
A form of regression analysis that analyzes the relationship between one dependent and one independent variable.
Standard Error
A measure of the precision of an estimated regression analysis coefficient that shows how much the coefficient would vary in regressions from different samples.
t-test
A test based on the size of the ratio of the estimated regression coefficient to its standard error that is used to determine the statistical significance of the coefficient.
Confidence Interval
The range of values in which we can be confident that the true coefficient actually lies with a given degree of probability, usually 95 percent.
Coefficient of Determination (R^2)
A measure of how the overall estimating equation fits the data, which shows the fraction of the variation in the dependent variable that is explained statistically by the variable included in the equation.
Adjusted R^2 Statistic
The coefficient of determination adjusted for the number of degrees of freedom in the estimating equation.
Degrees of Freedom
The number of observations (n) minus the number of estimated coefficients (k) in a regression equation.
F-statistic
An alternative measure of goodness of fit of an estimating equation that can be used to test for the joint influence of all the independent variables in the equation.
