A Small Midwest Agency Agrees to a Fixed Fee, or Contract

question 32

Multiple Choice

A small Midwest agency agrees to a fixed fee, or contract, with a new client.What is the downside for an agency like this when it uses the fixed-fee system?

• A)Most clients do not want to pay a flat 15 percent rate for all ads placed.
• B)Standard percentage rates to be charged keep dropping.
• C)Client and agency rarely agree on a fee without hard feelings or conflicts.
• D)More work may be needed than is originally predicted.

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Definitions:

Inferential Statistics

Statistical methods used to draw conclusions or inferences about a population based on a sample.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.

Inferential Statistics

The branch of statistics that allows for making predictions or inferences about a population based on a sample of data.