McDonnelly, a Fast Food Chain, Is Testing a New Kind

question 91

Multiple Choice

McDonnelly, a fast food chain, is testing a new kind of sandwich in thirty cities.Three levels of advertising A₁, A₂, A₃) and two price levels P₁, P₂) are being considered.Which of the following is true? 1-McDonnelly is interested in estimating the effects of both advertising and price. 2-The appropriate design is the randomized control group design. 3-The appropriate design is the factorial design. 4-The experiment can be represented by R X₁A₁, P₁) O₁ n = 10 ------------------------- R X₂A₂, P₂) O₂ n = 10 ------------------------- R X₃A₃, P₃) O₃ n = 10

• A)1
• B)2
• C)3
• D)4
• E)1 and 3

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Inelastic

Pertains to a scenario where the need for a product or service shows little reaction to fluctuations in its price.

Per Unit Price

The cost associated with a single unit of a product, illustrating the price at which one unit of the product can be purchased.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied to a change in one of its determinants.