SCENARIO 1-1 The Manager of the Customer Service Division of a Major

question 141

Multiple Choice

SCENARIO 1-1
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products.
-Referring to Scenario 1-1,the possible responses to the question "How would you rate the quality of your purchase experience with 1 = excellent,2 = good,3 = decent,4 = poor,5 = terrible?" result in

• A)a nominal scale variable.
• B)an ordinal scale variable.
• C)an interval scale variable.
• D)a ratio scale variable.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Shut Down

The process of ceasing operations or activity, either temporarily or permanently.

Average Variable Costs

The per unit cost of production that varies with the level of output, including elements like labor and raw materials.

Average Costs

Average costs represent the total costs of production divided by the total output or the cost per unit of output, often used to assess the efficiency of production processes.