Joy Ward Is the Director of Marketing at Helmsley College

question 3

Multiple Choice

Joy Ward is the director of marketing at Helmsley College.She has been studying marketing research data collected on a national sample of high school seniors who are planning on attending college.Joy is trying to determine what appeal she should use in a direct mail campaign that will be targeted at students with high SAT/ACT scores who live within 500 miles of Helmsley.She is intrigued with the marketing research data that measures the students' ratings of importance on a number of factors affecting their decision to choose a particular college.Some of the factors are (1) programs highly valued in the job market, (2) small campus atmosphere where professors know students' names, (3) ample opportunities for an active campus life individualized programs designed around students' needs and interests,and so on.There are eight different factors and each was rated on the same 5-point importance scale ranging from "Very Important" to "Very Unimportant." Joy knows that Helmsley could ethically use either the "small campus" appeal or the "individualized program" appeal.The small campus appeal has a mean score of 4.3 on the importance scale,while the individualized program appeal has a mean score of 3.95.Because both of these numbers indicate that these are important factors for students,she wants to know if the small campus appeal is really more important than the individualized appeal in the total college bound population.Which of the following tests should Joy run?

• A)a z test of the difference between two percentages
• B)independent samples t test
• C)paired samples t test
• D)ANOVA
• E)Duncan's Multiple Range Test

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Definitions:

Financial Results

The summary of a company's financial performance and position, typically reported on a quarterly and annual basis.

Risk-Adjusted Rates

In capital budgeting, a rate used in place of the cost of capital to reflect especially risky projects.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Certainty Equivalent NPV

A method of valuing risky projects or investments by adjusting the expected cash flows to reflect the investor's risk aversion, providing a 'risk-free' net present value.