Deck 12: Testing of Differences

Question 1

Practical significance depends on whether or not there is a(n):

A) useful managerial application that uses the difference.
B) confidence level of 99% or 95%.
C) marketing research report completed.
D) budget available.
E) financial analysis.

Answer 1

A

Question 2

Once you have determined the percentage and sample size of each of your two samples, and then compared the two percentages by taking their arithmetic difference, the next step is t:

A) determine the standard error of the arithmetic mean of differences.
B) divide the difference between the two sample percentages by the standard error.
C) enter the differences in XL Data Analyst.
D) determine the standard error of the difference between two percentages.
E) use the critical z value to test the null hypothesis.

Answer 2

D

Question 3

Which variable is often used by marketers to segment their market?

A) gender
B) geography
C) religion
D) age
E) height

Answer 3

A

Question 4

In order to be potentially useful for a marketing manager, differences must be:

A) at least at a ratio of 2 to 1.
B) statistically significant.
C) new and not part of existing knowledge.
D) at least at a ratio of 10 to 1.
E) measurable.

Question 5

A winery sees the market in three distinct segments based upon usage of wine; a dog food manufacturer sees the dog food market in 12 segments; Toyota offers 17 different models ranging from a two-seater sports car to the Avalon luxury car. These are all examples illustrating how:

A) marketers can take advantage of differences between market segments, simply by a conceptual analysis of differences in the marketplace.
B) marketers should search for all differences between each of their products or services.
C) marketers could take better advantage of differences between market segments if they had a method of determining insignificant differences in the marketplace.
D) marketers can take advantages of differences between market segments, and differences analysis can be used to discovery statistically significant, meaningful, and stable differences.
E) there are differences in the market, and by knowing statistical methods that focus on data summarization, marketers can take advantage of these differences.

Question 6

Researchers often misuse and abuse the concept of significance, for they tend to associate statistical significance with the:

A) size of the sample.
B) importance of the client.
C) magnitude of the result.
D) variable under investigation.
E) level of confidence.

Question 7

In your textbook, you learn to test for significant differences between:

A) two percentages or two means.
B) two percentages or three percentages.
C) two means or three percentages.
D) three or more percentages.
E) a percentage and a mean.

Question 8

To test whether a true difference exists between two group percentages, we test the ________ hypothesis.

A) z
B) t
C) z or t hypothesis; it does not matter
D) null
E) alternative

Question 9

A researcher only has access to the sample results when trying to determine whether or not there is a statistically significant difference between two groups. Therefore, the researcher:

A) needs sample sizes of over 1000 to make the results meaningful.
B) should remove any surveys from the data where there are any item omissions.
C) must always ask a respondent to indicate their gender on a survey.
D) should have some hypotheses ready to test.
E) must fall back on statistical generalization concepts.

Question 10

The null hypothesis states that the difference in two groups population parameter is:

A) less than 1; there is no significant difference between the groups.
B) less than 0 (a negative number); showing a directional difference between the groups.
C) the same as the alternative hypothesis; no difference between the hypotheses.
D) equal to zero; there is no difference between the groups.
E) equal to zero; there is a difference between the groups.

Question 11

Marketing segmentation is a vital marketing strategy concept. As such, a marketing researcher is always hoping for the:

A) null hypothesis to be supported.
B) alternative hypothesis results to be negative.
C) null hypothesis to not be supported.
D) alternative hypothesis that a difference does not exist to be voided.
E) null hypothesis to be accepted over the alternative hypothesis.

Question 12

When a researcher is determining if two groups are statistically significant, he or she is considering the two groups as two separate populations. The question is whether or not the two different populations':

A) z scores are the same.
B) t scores are the same.
C) parameters are different.
D) associations are different.
E) summarization values are the same.

Question 13

Researchers can avoid the pitfall that traps many in the industry by understanding the difference between ___________ significance and ___________ significance.

A) objective; subjective
B) quantitative; qualitative
C) statistical; managerial
D) statistical; practical
E) relevant; irrelevant

Question 14

We have two percentages and we want to know if they are statistically different. We calculate our z and find that it is 4.21 at a 95% level of confidence. This means:

A) the two percentages are the same.
B) the two percentages are not statistically different.
C) the two percentages have a 421 percent chance of not being different.
D) the two percentage are statistically different.
E) the two percentages have a 421 percent chance of being different.

Question 15

Which of the following states that the difference between the population parameters between two groups is zero?

A) null parameter
B) null hypothesis
C) alternative hypothesis
D) null alternative hypothesis
E) zero hypothesis

Question 16

If the null hypothesis is true, the distribution of difference with repeated samplings follows the normal curve, with an average equal to ____ and a standard error equal to ____.

A) 1; 0
B) 1; 95%
C) 0; 95%
D) 0; 1
E) 0; 0.05

Question 17

When testing for differences between two groups, if the computed z value at 99% confidence is 1.98 we can conclude that:

A) we can reject the null hypothesis that there is no difference between the groups.
B) we can accept the null hypothesis that there is no difference between the groups.
C) there is a statistically significant difference between the two groups.
D) that there is a difference, but not a statistically significant one, between the two groups.
E) we need to run more tests because 1.98 is too close to the 1.96 z-value for 99% level of confidence.

Question 18

Iams marketing over a dozen varieties of dry dog food, Toyota marketing over 20 different types of cars, and Boeing having five different types of commercial jets and a separate business jets division are all examples of:

A) differing markets strategy.
B) marketing variation.
C) market segmentation.
D) market separation.
E) contrasting markets.

Question 19

When making a comparison between two groups of respondents to determine whether or not they are statistically different, in concept, the researcher is considering the two groups as two:

A) different populations.
B) different answers.
C) different tests.
D) common groups.
E) related groups.

Question 20

There are different ways a research can analyze for differences between groups discussed in the textbook. Which of the following is NOT one of those ways?

A) differences between 2 groups
B) differences between 3 groups
C) differences between 2 research projects
D) differences between averages of 2 variables in one group
E) differences between more than 3 groups

Question 21

Within one group, when significant differences between the averages of two variables such as ratings of importance are found, then the levels of the ratings are:

A) indicating market segmentation opportunities.
B) indicating that product changes are required.
C) truly different in the population that the sample represents.
D) practically significant.
E) equally significant to the company.

Question 22

Tom Morrow who runs a car dealership was reviewing the results on a marketing research report presented to him by ABC Research. He had asked ABC to compare the overall preference of his target market for an economical car with that of a hybrid vehicle. The report showed that the null hypothesis was not supported. What can Tom conclude from this?

A) That there is a difference in the level of preference for an economical car and that of a hybrid vehicle that exists within his target market.
B) That his target market would prefer an economical hybrid.
C) That he has two distinct target markets.
D) That the question requires further investigation.
E) That he needs to order economy cars and hybrids.

Question 23

Assume you have two questions of the same format, a 5-point scale measuring importance level. One question measures the importance of prices in the selection of a restaurant and the other measures the importance of food quality. If you want to know if the two mean scores of each question are significantly different, you would use:

A) a z test of the differences between two percentages.
B) the procedure for testing the significance of the difference between two means from two different groups.
C) an independent samples t test.
D) a two mean comparison z test.
E) a two question, mean comparison test.

Question 24

Let's say we wanted to see if there was a significant difference between your class's GPA when you were all freshmen and your class's GPA today. What is the proper test for differences?

A) differences between percentages of 2 groups
B) differences between percentages of 2 variables in one group
C) differences between 2 research projects
D) differences between averages of 2 variables in one group
E) differences between averages of 2 groups

Question 25

If we wanted to test for the mean likelihood that shoppers will shop again in different departments such as home and garden versus sporting goods, versus automotive, versus electronics, we would use:

A) a z test for differences between percentages
B) independent samples t test
C) paired samples t test
D) ANOVA
E) departmental means test

Question 26

Directional hypotheses are also feasible in the case of tests of statistically significant differences. The only difference is:

A) ignore the sign of the z value because we are only looking for a significant difference; the size of the z value.
B) that the z value for 95% is 1.64 and for 99% is 2.33.
C) we need to not only look at the z value but the sign to ensure the direction.
D) that the alternative hypothesis is called the directional hypothesis.
E) the null hypothesis states the opposite direction of difference to what the directional hypothesis is proposing.

Question 27

Tommy Prothro, a marketing manager for Golden Snack Bars, has commissioned marketing research to determine if one recipe of snack bar is superior to another recipe. More than 400 persons who were "snack bar eaters" were involved in taste tests and, after tasting both recipes, they were asked which recipe they would purchase the next time they purchased snack bars. Tommy is now looking at the data and he sees that recipe "A" had 53 percent stating a preference, whereas recipe "B" had 47 percent. Tommy's brand manager felt this was significant evidence and that the firm should produce recipe "A." Tommy, however, wanted more proof so he asked the research firm to run a test to determine if there was a significant difference between the two recipes. By doing this, Tommy would get information that would allow him to determine:

A) if there are real differences between the two recipes preferences in the population.
B) if the differences between the recipes are really 6 percent or more.
C) the number of consumers in each target market preferring recipe "A" versus "B."
D) whether or not the statisticians in the research firm agree with his brand manager.
E) None of the above; there is no statistical test to determine significant differences between two percentages.

Question 28

Let's assume there are freshman, seniors, and graduate students in your class and we want to know if their average GPAs differ. What is the proper statistical test?

A) t test
B) Means differences test
C) Summarization of means test
D) ANOVA
E) z test

Question 29

The only difference in the procedure for testing the significance of the difference between two averages versus testing the significance between two percentages is:

A) testing for averages looks for differences in a metric variable and percentages looks for differences in a categorical variable.
B) testing averages require using the z value and percentages require using the p value.
C) testing averages requires a 99% level of confidence whereas a level of 95% is sufficient for testing percentages.
D) when testing for 95% level of confidence with averages the z value is 1.96 and for percentages it is 1.64.
E) testing averages requires two more steps than the testing with percentages.

Question 30

What are the steps used in XL Data Analyst to determine the significance of the difference among more than two group averages?

A) "Compare," select a metric grouping variable, select a metric target variable, and "OK."
B) "Compare," select a categorical grouping variable, select a metric target variable, and "OK."
C) "ANOVA," select a categorical grouping variable, select a metric target variable, and "OK."
D) "ANOVA," select a metric grouping variable, select a metric target variable, and "OK."
E) "Compare," select a metric grouping variable, select a categorical target variable, and "OK."

Question 31

Which of the following commands would be used to test for the significant differences between two percentages using XL Data Analyst?

A) "Summarize," "2 Group Percents," select two target variables, then select one grouping variable, and "OK"
B) "Compare," "2 Group Percents," select two grouping variables, and "OK"
C) "Compare," "2 Group Percents," select two target variables, and "OK"
D) "Summarize," "2 Group Percents," select two grouping variables, then select one target variable, and "OK"
E) "Compare," "2 Group Percents," select two grouping variables, then select one target variable, and "OK"

Question 32

Rebecca Sims is the general manager of a chain of auto parts stores. There are 400 stores in the country and they are divided up into seven divisions based upon geography. Each division has a division manager. The firm prides itself on keeping close tabs on customer satisfaction, and Rebecca has decided to take a sample of the 400 to test a new surrogate measure of customer satisfaction; the dollar value of returned merchandise. Each sample store reports daily the dollar value of merchandise returned and an average is calculated for each division. When Rebecca sees the first set of results, she wants to know if the differences between the division means are real or due to sampling error. Rebecca should use which test?

A) a z test of the difference between two percentages
B) independent samples t test
C) paired samples t test
D) ANOVA
E) a division differences test

Question 33

Which of the following commands would be used to test for the significant differences between two percentages using XL Data Analyst?

A) "Summarize," "2 Group Averages," select two target variables, then select one grouping variable, and "OK"
B) "Compare," "2 Group Averages," select two grouping variables, and "OK"
C) "Compare," "2 Group Averages," select two target variables, and "OK"
D) "Summarize," "2 Group Averages," select two grouping variables, then select one target variable, and "OK"
E) "Compare," "2 Group Averages," select two grouping variables, then select one target variable, and "OK"

Question 34

The analysis of variance, ANOVA, is a misleading term because:

A) it is an analysis of the differences between the standard deviations of groups and not the variances.
B) variance is a singular term implying looking at one group, whereas ANOVA takes multiple groups into is analysis.
C) it is not an analysis of the difference between the standard deviations of groups but of the differences between the averages of groups.
D) analysis implies that results are absolute, without error, and there is always some measureable error in statistical analysis.
E) analysis implies practical as well as statistical significance.

Question 35

The standard error of a difference curve has a mean of:

A) 1.
B) 0.
C) 1.96
D) 2.58
E) -1.

Question 36

Which of the following is NOT true of a differences test?

A) With the null hypothesis, the arithmetic difference between one parameter and another is 0.
B) With both hypotheses, it is impossible to "guess" differences before testing.
C) With the null hypothesis, the statistical test begins with the assumption that the two percentages (or means) are exactly the same value.
D) The alternative hypothesis is that the two percentages (or means) are not the same value.
E) With the alternative hypothesis, the difference between parameters is not 0.

Question 37

Which of the following does NOT reflect the discussion around the use of ANOVA in your textbook?

A) ANOVA uses the f test statistic
B) ANOVA is a very efficient, convenient analysis when comparing 3 or more averages, over multiple two group tests.
C) ANOVA's null hypothesis is that none of all the possible group-to-group averages is significantly different.
D) When the null hypothesis is not supported, follow-up analysis must be applied to identify where the significant differences are found.
E) The alternative hypothesis is that at least two pair of averages is significantly different.

Question 38

The search for differences in the averages of more than two groups translates into:

A) running multiple ANOVA tests.
B) running multiple tests for differences of averages.
C) partitioning a large market into a number of market segments.
D) deciding on which two groups to analyze first as multiple paired comparisons are required.
E) searching for practical significance over statistical significance.

Question 39

When comparing the average of one variable to the average of another variable it is important to ensure the variables:

A) have the same number of responses.
B) come from different groups.
C) are measured on the same scale.
D) come from different studies.
E) come from the same group but at different points in time; time series data.

Question 40

When a computed z value (for a test for differences between two percentages), 4.21, is larger than the standard z value, 1.96, then this amounts to:

A) support for the null hypothesis; the two percentages are differen.t
B) no support for the null hypothesis; the two percentages are NOT different.
C) support for the null hypothesis; the two percentages are NOT different.
D) no support for the null hypothesis; the two percentages are different.
E) having to recalculate as the z value is not utilized for testing the differences between two percentages.

Question 41

Market segmentation relies on the discovery of significant differences through the application of proper data analysis

Question 42

When testing for differences, a manager must first determine if the differences are meaningful and then act on the differences. Only then should he or she decide if the differences are significantly different.

Question 43

In XL Data Analyst, the target variable is the variable on which the groups will be compared.

Question 44

The procedure for testing the significance of the difference between two averages from two different groups (samples) is identical to the procedure used in testing two percentages.

Question 45

XL Data Analyst will report analysis of percentage differences tests in terms of t tests.

Question 46

Market segmentation holds that different types of consumers have different requirements.

Question 47

A group comparison table is often used to summarize significant differences when reporting group differences to clients.

Question 48

There are different statistical tests for testing for differences between means, and, differences between percentages.

Question 49

Directional hypotheses are also feasible in the case of tests of statistically significant differences.

Question 50

In the test to determine significance difference between two means generated by independent samples, there is no provision for testing a directional hypothesis such as "males drink more soft drinks per week than females."

Question 51

Gender is a demographic variable that is often used by marketers to segment their markets.

Question 52

When testing the difference between two percentages from two independent samples, XL Data Analyst will not make this calculation. You must do it by hand.

Question 53

When testing the difference between two percentages from two independent samples, a z value larger than 1.96 indicates the difference is NOT significantly different.

Question 54

Research determines a statistical significant difference between cold remedy preferences depending on symptoms to be relieved. When the marketing manager markets several different remedies, each designed to reduce a different symptom, we can say the differences found in the research were also practically significant

Question 55

Although there are separate differences tests for means versus percentages, all these test for differences between two or more values. As long as you have at least two percentages or two means, any one test will be appropriate.

Question 56

The formula for calculating the difference between two percentages calculates a z value.

Question 57

When we test for the differences between two groups, the null hypothesis is that the difference in the two groups' population parameters is more than 30.

Question 58

When a marketing researcher compares two groups of respondents to determine whether or not there are statistically significant differences between them, the research thinks of them as two dependent populations.

Question 59

Different tests are required to test the differences between the means of two samples depending upon whether or not the two samples are independent or are paired.

Question 60

Researchers can misuse and abuse the concept of significance, if they associate statistical significance with the magnitude of the result.

Question 61

p- ANOVA is a procedure that determines differences between three or more percentages.

Question 62

XL Data Analyst uses a z test to test for differences between two variables within one group.

Question 63

ANOVA's null hypothesis is that none of all the possible group-to-group averages is significantly different.

Question 64

A researcher may report a significant difference between variables but it is up to the manager alone to assess the practical usefulness of the difference.

Question 65

ANOVA uses a t test statistic.

Question 66

A researcher would very much like to report that significant differences were found between two groups because this is the first of the two conditions of market segmentation; significant difference.

Question 67

Directional tests are not possible with testing for significant differences between the averages of two variables within one group.

Question 68

The word "variance" in the term "analysis of variance" is misleading.

Question 69

The alternative hypothesis for an ANOVA is that at least one pair is significantly different.

Question 70

When two variable averages are not significantly different, this means that the arithmetic difference between them is not a true one.

Question 71

ANOVA is used to determine if there is any correlation among three or more paired groups or samples.

Question 72

In order to test for significant differences a researcher needs to fall back on statistical generalization concepts.

Question 73

Practical significance depends on whether or not there is a useful managerial application that uses the statistically significant difference that was uncovered.

Question 74

The proper use of a differences test for two variables' averages requires that you select two metric variables that are measured with the same scale units.

Question 75

Comparing the average of one variable to the average of another variable within the same group is valid whether or not the variables were measured with the same scale.

Question 76

When testing the differences between two percentages a metric variable is used.

Question 77

Determining if there is a difference between two groups on a categorical variable involves a z test if done manually and a t test if run with XL Data Analyst.

Question 78

The search for differences among more than two groups translates into partitioning a large market into a number of market segments.

Question 79

The alternative hypothesis states that there is a true difference between the two group percentages that are being compared. When comparing averages an ANOVA hypothesis is used instead.

Question 80

ANOVA uses the F test statistic, and the significance value that appears is the degree of support for the alternative hypothesis.