Two Primary Points Must Be Considered When a Franchisor Develops

question 2

Multiple Choice

Two primary points must be considered when a franchisor develops expansion plans for a franchise.What are they?

• A)distribution and number of existing franchises
• B)overhead and distribution
• C)overhead and franchisor's previous experience with expansion
• D)number of existing franchises and franchisor's previous experience with expansion

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Definitions:

Critical Value

A threshold in hypothesis testing that defines the boundary of the region where the null hypothesis is rejected.

Minimum Value

The smallest number in a data set.

Significance

Significance refers to the measure of whether the results of a study or experiment are likely not due to chance, as determined by a set threshold of probability (p-value).

Alpha (α)

The threshold of significance in a statistical test; the probability of rejecting the null hypothesis when it is true, often set at 0.05 or 5%.