Interpreting Market Research

Question 1

What is a correlation

Answer 1

Used to establish the strength between two sets of values
Positive, as A goes up so does B
Negative, as A goes up B goes down
Perfect negative- -1
Perfect positive: 1
No correlation-0

Question 2

What is extrapolation

Answer 2

Using previous patterns of numerical data in order to predict values in the future assuming it will continue

Question 3

Strengths of extrapolation

Answer 3

• common for past trends in data to continue
• can be used to track past figures

Question 4

Weaknesses of extrapolation

Answer 4

• less reliable if fluctuation occurs
• doesn’t take into account changing business environment
• ignore qualitative factors eg fashion amd tastes
• ignores product lifecycle

Question 5

What are confidence levels

Answer 5

Probability reserearch findings are correct

Question 6

What are confidence intervals

Answer 6

Possible range of outcomes for a given confidence level

Question 7

What are confidence levels and intervals used for

Answer 7

To assess reliability of data dependant on sample size and construction