Terms

Question 1

Kurtosis

Answer 1

Measure of the peakedness of a probability distribution

Question 2

Minimax

Answer 2

Decision rule for uncertainty that strives to maximize the minimum payoff

• Minimize the max regret
• Regret = payoff - max payoff for each competitor choice
• Regret is positive or zero

Question 3

Risk averse

Answer 3

Name for the tendency for most people to avoid some risks

Question 4

Concept test

Answer 4

Name for a test that uses consumer responses to evaluate new product ideas

Question 5

Cluster

Answer 5

Name for the distribution used for statistical tests when the sample size is very small

Question 6

Altruistic

Answer 6

Weakest of the three types of survey cover appeals

Question 7

Reliability

Answer 7

Characteristic of measure that describes if a researcher can obtain identical or very similar responses from each subject by repeating the study

Question 8

Sample frame

Answer 8

Name for the error in a survey that is caused by the sample selection method or the size of the sample

Question 9

Normal

Answer 9

Range whose endpoints define a certain percentage of the responses to a question (based on knowledge of the area under a bell-shaped curve)

Question 10

Variance

Answer 10

Name for a measure of the departures from the true value of a statistic that changes direction (sign) or magnitude with replications

Question 11

Bias

Answer 11

Consistent fixed departure (w/ replications) from some underlying true value of a statistic

Question 12

Median

Answer 12

Stat that indicates the middle observation

Question 13

Skewness

Answer 13

Measure of a distribution’s asymmetry – If it is shifted to the left or right and has a long tail on one side and a short tail on the other side…

Question 14

Type I error

Answer 14

Probability that a statistical test rejects a true null hypothesis

Question 15

Mere measurement

Answer 15

The effect that results from surveying people about their interest in or likelihood to do something

Question 16

Maximax

Answer 16

Optimistic manager – maximize the max payoff

Question 17

Maximin

Answer 17

Pessimistic manager – maximize the min payoff

Question 18

Sample frame

Answer 18

(Intended to be) a master list of the entire population

Question 19

Systematic sampling

Answer 19

Uses a skip interval w/ a random starting point

Question 20

Simple random sample

Answer 20

Random numbers to select members of population

Question 21

Coverage error

Answer 21

Differences between population and sample that arise because some members of the population were not included in the sample frame

Question 22

Nonresponse error

Answer 22

Differences between population and sample that arise from the conscious exclusion of population members

Question 23

Sample errors occur when…

Answer 23

Population list is inaccurate

Question 24

Snowball sampling

Answer 24

A non-probability sampling method whereby each person interviewed may be asked to suggest additional people for interviewing

Question 25

Gambler’s Fallacy

Answer 25

Belief in negative autocorrelation in a random sequence after 5 coin flips of heads, assuming the next one is likely to be tails

Question 26

Hot Hand Fallacy

Answer 26

Belief in positive autocorrelation in a random sequence, assuming basketball players get a ‘hot hand’

Question 27

Correlation

Answer 27

Standardize the covariation between two variables into a number (-1, 1)

Question 28

Spurious correlation

Answer 28

An apparent but false relationship between two (or more) variables that is caused by some other variable

Question 29

Parameters

Answer 29

True value of a population

Question 30

Statistics

Answer 30

Estimates of the parameters based on a sample

Question 31

Mean

Answer 31

Avg of the observation

Question 32

Mode

Answer 32

Most common observation