A Researcher and Client Agree That a Difference of 15

question 40

Multiple Choice

A researcher and client agree that a difference of 15 percent is needed in the preference ratings of an existing product, and a proposed new product in order to warrant dropping the old product and producing the new one. The 15 percent difference in preference is called the:

• A) just noticeable difference (jnd)
• B) decision criterion percentage
• C) decision criterion, mean
• D) minimal standard
• E) action standard

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Definitions:

Financial Institutions

Organizations that provide financial services to its clients or members, including banks, credit unions, insurance companies, pension funds, and investment companies.

Investment Banker

Underwrites new issues of securities for corporations, states, and municipalities.

Securities

Financial instruments that represent ownership positions in corporations (stocks), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by options.