Interpreting Marketing Data

Question 1

Negative correlation

Answer 1

An increase in one numerical variable causes a decrease in another variable

Question 2

Positive correlation

Answer 2

An increase in one variable causes an increase in another variable

Question 3

Strong correlation

Answer 3

Two variables are closely related. If shown on a scatter diagram, the points would be in a straight line

Question 4

Confidence intervals show

Answer 4

They show the possible range of outcomes for a given confidence level

Stated numerically

Question 5

Extrapolation definition

Answer 5

Means forecasting sales in the near future based on what has happened in the recent past

Question 6

Price elasticity of demand definition

Answer 6

The responsiveness of demand to a change in the selling price
PED is always negative

Question 7

Formula for PED

Answer 7

%Change in demand / %Change in price
PED is always negative

Question 8

If PED is between 0 and -1, demand is [1] and an increase in price causes an increase in [2]

Answer 8

1. Inelastic
2. Revenue

Question 9

Fill the gaps

If PED is between -1 and -2, demand is [1] and a decrease in price causes a [2] in revenue

Answer 9

Elastic
Increase