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.

Question

Quizplus · Accepted Answer

The population of interest is all potential car buyers, but the survey was only sent to those who test drove a car. This means that the survey design suffered from non-response bias, as those who did not return the survey may have had different reasons for not buying a car. Additionally, because the survey comes from a sample, 44% is a statistic, not a parameter.

The Owner of a Car Dealership Planned to Develop Strategies