What Is a Major Benefit of Test-Markets as a Quantitative

question 160

Multiple Choice

What is a major benefit of test-markets as a quantitative forecasting method?

• A) They provide realistic information on actual purchases rather than intent to buy.
• B) They are quick and provide salespeople with an opportunity to explain their markets.
• C) They are effective in situations with stable customer demand and environmental conditions.
• D) They are useful for long-term predictions.

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Definitions:

Variance

A statistical measurement of the dispersion of returns for a given security or market index, indicating volatility.

Time Horizon

The length of time over which an investment is expected to be held or a financial goal is to be achieved.

Standard Deviation

A measure of the dispersion or variability in a dataset, commonly used in finance to assess the volatility of an asset's returns over time.

Volatility

is a statistical measure of the dispersion of returns for a given security or market index, often used as a measure of risk.