When Categorizing Risk in New-Product Development, the Highest Level of Risk

question 35

Multiple Choice

When categorizing risk in new-product development, the highest level of risk occurs when

• A)inadequate supply of materials delays production.
• B)competitors copy products and sell them at a lower price.
• C)the product fails to generate sales.
• D)supplier cost savings are not achieved.
• E)the product takes sales away from existing products.

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Definitions:

Positive Correlation Condition

A condition where two variables increase or decrease in parallel, indicating a direct relationship between them.

Placebo Effect

A psychological phenomenon where patients experience real improvements in their condition after receiving a treatment with no therapeutic value, simply because they believe it is effective.

Participants' Expectations

Refers to the beliefs or assumptions held by individuals participating in a study about what will happen to them or what they are supposed to do, which can influence the outcomes of research.

Single-blind Study

A research experimental design in which the participants do not know which group (experimental or control) they are in, to prevent bias, while the researchers do.