DirectProtect Is an Insurance Provider That Uses Telemarketers Rather Than

question 68

Multiple Choice

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. It wants to introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be. One of the first things researchers did was to invite in a group of eight people with insurance to talk about home and auto insurance. Their
Conversation was recorded and later analyzed to determine if there were any differences between customers from different countries. This was an example of a(n) :

• A)focus group.
• B)research variable.
• C)mechanical observation.
• D)experiment.

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Definitions:

Investment Proposal

A formal suggestion for investing capital, typically encompassing projected costs, benefits, risks, and returns.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period of time.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over its useful life.

Net Present Value

A financial measure that determines the variance between the current worth of cash coming in and the current worth of cash going out over a specified timeframe.