The owner of a car dealership planned to develop strategies to increase sales. He hoped to learn the reasons why many people who visit his car lot do not eventually buy a car from him. For one
Month he asked his sales staff to keep a list of the names and addresses of everyone who came in to test drive a car. At the end of the month he sent surveys to the people who did not buy the car, asking them why. About one third of them returned the survey, with 44% of those indicating that they found a lower price elsewhere. Which is true?
I. The population of interest is all potential car buyers. II. This survey design suffered from non-response bias.
III. Because it comes from a sample 44% is a parameter, not a statistic.
A) I only
B) I, II, and III
C) II only
D) I and II only
E) II and III only

Question

Quizplus · Accepted Answer

I is true because the owner is interested in increasing sales, which would involve understanding the behavior of potential car buyers. 
II is true because the response rate was only one-third, which suggests that those who did not respond may have different reasons for not buying a car. This leads to non-response bias.
III is false because 44% is a statistic, not a parameter.

The Owner of a Car Dealership Planned to Develop Strategies