Which of the Following Is an Advantage of Using Test

question 35

Multiple Choice

Which of the following is an advantage of using test marketing?

• A) It is the most economical market testing method for a new product.
• B) It provides the best sales forecast and the best evaluation of alternative marketing strategies.
• C) It reduces the risk for test marketers because its forecasts are highly projectable.
• D) It is the most reliable method because it helps maintain confidentiality more than any other test methods.

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Definitions:

Confidence Interval

An extent of values, based on sample statistics, that is likely to capture the essence of an undisclosed population parameter.

Sample

Subset or portion of a population.

Mean

The average value of a data set, obtained by dividing the sum of all the values by the number of values.

Confidence Interval

A span of numerical values, calculated from statistics of a sample, that is expected to encompass the value of a not yet known population parameter with a certain degree of confidence.