If You Are Comfortable with Assumptions Required for Causal Analysis

question 5

Multiple Choice

If you are comfortable with assumptions required for causal analysis and you have estimated the relationship between Sales and running a promotion together with a price discount to be Sales_i = 140.3(60) + 4.3(0.7) Promo with standard errors reported in parenthesis. What would you predict to occur in the event of running a discount next week?

• A) That it will increase sales, but you cannot reject the null hypothesis that it won't have any effect at the 90% confidence level.
• B) That it will decrease sales, and that this has support at the 90% confidence level.
• C) That it will increase sales by 4.3, and you are 90% confident that Promotions have some effect on Sales.
• D) You are 90% confident that it will increase sales by 4.3.

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Definitions:

High-Involvement Managerial Strategy

Approaches promoting employee engagement through participation in decision-making and problem-solving.

Job Characteristics

The attributes of a job that affect an employee's motivation and job satisfaction, including task variety, autonomy, and significance.

Broad Jobs

Positions that are characterized by wide-ranging responsibilities and tasks, allowing for flexibility in role definition and job functions.

Creative Jobs

Occupations that involve the use of imagination or original ideas to create something, often in the arts or related fields.