The Method of Setting Prices in Which Marketers Total All

question 41

Multiple Choice

The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________.

• A) supply-based pricing
• B) target costing
• C) cost-plus pricing
• D) yield management pricing
• E) demand-based pricing

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Definitions:

Point Estimate

A single value estimate of a population parameter that serves as the best guess or prediction of the parameter.

Confidence Limits

Confidence limits define the range within which a population parameter is estimated to lie with a certain level of confidence.

Standard Error

A measure of the dispersion or spread of sample means around the population mean.

Confidence Interval

A range of values, derived from a data set, that is likely to contain the value of an unknown population parameter.