Pablo Owns a Chain of Toy Stores in Key Markets

question 37

Multiple Choice

Pablo owns a chain of toy stores in key markets across the country.He wanted to price the newest toy robots so that he could secure the most profit from its sale.He knew from the past that a sophisticated method was to conduct a pricing experiment.What is the downside to running an experiment?

• A) It takes up employees' time while they are collecting the surveys.
• B) The store will lose profits in stores where the robots are priced either too high or too low.
• C) It will anger customers who travel long distances to go to more than one store.
• D) The vendor won't like having the robots sell for different prices.
• E) The additional advertising expense is exorbitant.

Distinguishing between experimental and control groups.

Understanding the role of placebos and how they contribute to controlling for extraneous variables.

Recognizing limitations and strengths of experimental research.

Identifying strategies to control for demand characteristics and experimenter bias.

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Definitions:

Golden Mean

The desirable middle ground or moderate path between two extremes, especially in Aristotle's ethical philosophy.

Moderation

The action of reducing extremes or excesses; maintaining balance or avoiding any form of extremism.

Individual

Referring to a single person or thing, distinct from a group or aggregate.

Golden Mean

In Aristotelian ethics, the desirable middle between two extremes, one of excess and the other of deficiency, representing balance and moral virtue.