A Researcher Is Interested in Predicting Whether a Company Might

question 1

Multiple Choice

A researcher is interested in predicting whether a company might attempt to buy out a competitor (score = 1) or not (score = 0) , using market share (%) as an independent variable. She establishes that the value of 'exp(B) ' is 2.56. How should she interpret this?

• A) If two companies have a market share that differs by 1 unit, then the odds of the company with the higher score attempting a takeover are 2.56 higher than for the other company.
• B) 2.56 times more companies who attempted takeovers scored highly on market share.
• C) If two companies have market share scores that differ by 1 unit, then the odds of the company with the higher score attempting a takeover are 2.56 lower than for the other company.
• D) Takeover rates are 2.56 times as high in companies with a large share of their market.

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Definitions:

Direct Labour Time

The actual time workers spend on the production floor directly working on products or services.

Standard Costing System

An accounting method that uses standard costs for costing inventory and measuring efficiency.

Board Metres

A unit of measure used in the lumber industry to quantify the volume of wood.

Ideal Standards

Theoretical cost benchmarks assuming perfect operating conditions, used for planning and control.