Choice Homes,Inc

question 178

Multiple Choice

Choice Homes,Inc. ,based in Texas,built its reputation by building high-quality new homes,often at prices less than "used" ones.Choice Homes used mass-purchasing power,innovative high-tech communications among employees to coordinate the building process,and other entrepreneurial strategies to hold costs down.Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the "American Dream" of home ownership for the same price as rent.Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples.The Choice Classic name was designed to capitalize on the reputation of Choice Homes,especially for current Choice home owners who are ready to "move up" to a larger home.Recently,Choice Homes started a third line of homes called "Reflections," which are expensive,custom-designed homes located in exclusive,prestigious neighborhoods.
-Refer to Choice Homes,Inc.Kurt McKinney has just received a large inheritance and wants to have his "dream" home built.He knows exactly the architectural design he wants.He wants a particular Reflections home.The type of consumer product he wishes to buy is best classified as a(n) :

• A) shopping product
• B) convenience product
• C) nondurable good
• D) specialty product
• E) unsought product

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Definitions:

Probability

The measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Critical Value

A threshold in hypothesis testing, which the test statistic must exceed in order to reject the null hypothesis, indicating a statistically significant result.

Degrees of Freedom

The capacity of different values or numerals that can be designated to a statistical distribution.

α

A symbol often used to denote the probability of making a Type I error in hypothesis testing, representing the significance level.