Answer to Question 1
b
RATIONALE: Coming up with a product design that will have the highest utility for a sufficient number of people to ensure sufficient sales to justify making the product is known as the share of choice problem in marketing literature.
Answer to Question 2
The t distribution is used when the population standard deviation is unknown and the sample size is small. And the t- test statistic is calculated using n 1 degrees of freedom.
RATIONALE: The t-distribution and the normal approximation arise only for small sample sizes.
In that case, the t-distribution is used which adjust for additional error due to the fact that the population standard deviation is unknown.