Author Question: Coming up with a product design that will have the highest utility for a sufficient number of people ... (Read 112 times)

luvbio · **on:** Jun 24, 2018

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 ___________ in marketing literature.
a. capital budgeting problem
b. share of choice problem
c. fixed-cost problem
d. traveling-salesman problem

Question 2

What is the difference between the standardized normal distribution (used for tests with z) and the t distribution?

vickybb89 · **Reply #1 on:** Jun 24, 2018

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.