A Rule-Of-Thumb in Selecting the Number of Response Categories Is

question 30

True/False

A rule-of-thumb in selecting the number of response categories is to give the respondent a choice of at least nine.Fewer than nine categories will not capture individual differences, particularly in a telephone interview.

---

Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded, leading to market stability where there is no excess supply or demand.

Equilibrium Quantity

The amount of goods or services available and sought after at the balance price.

Scalping

The practice of buying tickets, securities, or commodities for immediate resale at higher prices, often to exploit short-term fluctuations.

Equilibrium Level

The point at which market supply equals market demand, leading to a stable situation where there is neither excess demand nor excess supply.