Sandra Catrioni Is a Research Analyst at Spellman Research Associates

question 87

Multiple Choice

Sandra Catrioni is a research analyst at Spellman Research Associates.She has just completed a study of customers for Brennan's,a department store in Tulsa,Oklahoma.She asked the question,"How much do you believe you spend on an average trip to a department store?" She realizes that the type of measurement scale is ratio.However,for her client's presentation,she wants to create categories of the answers and put them in a bar chart.The categories will be of unequal amounts.The first category will be "Less than $10" and the second category will be "$10 to $25," and so on.What effect will this have on the type of measurement scale she will be using with the new variable for the categories she created?

• A)Nothing;once a ratio scale,always a ratio scale.
• B)The ratio scale will now become an ordinal scale.
• C)The ratio scale will not become an interval scale.
• D)The ratio scale will become a nominal scale.
• E)The ratio scale will become a bar chart scale.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Total Product

The overall quantity of goods or services produced by a firm or an economy over a specific period, often used to measure productivity.

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while other factors are held constant, the incremental output per unit of the increased factor will eventually decrease.