The Correlation Matrix Below Provides the Results of a Recent

question 50

Essay

The correlation matrix below provides the results of a recent commercial test.A * indicates a statistically significant correlation.
Age Income Rating of ad Rating of ad Purchase
believability liking Intent
Age 1.0
Income .57* 1.0
Rating of ad
believability -.38 .02 1.0
Rating of ad
liking .09 -.05 .87* 1.0
Purchase
intent -.15 .04 .83* .57* 1.0
The researcher concludes: "This is good news.The more we increase the commercial's believability the more we can cause purchase intent to rise."
Do you agree or disagree with this conclusion?

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost per unit.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.

Fixed Costs

Costs that do not vary with the level of output or production in the short term, such as rent or salaries.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.