An Advantage of Doing Experiments in the Laboratory Over the Field

question 29

Multiple Choice

An advantage of doing experiments in the laboratory over the field setting is that

• A) participants can be randomly assigned in the lab.
• B) more extraneous variables can be held constant in the lab.
• C) variables can be manipulated in the lab.
• D) there is no selection bias in the lab.

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Definitions:

Sales Mix

The relative proportions in which a company’s products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

Total Profits

The sum of all profits made by a business within a certain period, after all expenses have been deducted from total revenues.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been subtracted, indicating how much contributes towards fixed costs and profit.

Fixed Expenses

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, insurance, and property taxes.