RESEARCH STUDY 2

question 16

Essay

RESEARCH STUDY 2.1: Charlotte is studying subliminal messages and weight loss.She is curious whether people will lose more weight if they hear subliminal messages that encourage weight loss ("don't eat that food," "you want to be thin," etc.) in the music on their iPods than will people who do not have subliminal messages in their music.She studies 40 people and finds the following results: Explain why the results of Cells B and D are important.

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Definitions:

Utility Function

A representation of a consumer's preferences, modelling satisfaction obtained from consuming goods and services.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Consumption

The use of goods and services by households, leading to a decrease in their quantity or quality.

Utility Function

An economic model that represents how different combinations of products or services can generate various levels of happiness or utility to a person, guiding choices.