In Which of the Following Situations Could a Research Analyst

question 2

Multiple Choice

In which of the following situations could a research analyst use discriminant analysis?

• A) A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans
• B) A psychologist wants to understand the underlying personality factors associated with materialism in consumers
• C) An airline wants to classify its customers into groups based on their relative profitability
• D) The brand manager for Tide laundry detergent wants to understand how consumers perceive Tide relative to other laundry detergents
• E) A retail store wants to determine if there are differences in shopping frequency associated with gender

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Definitions:

Noncumulative Preferred Stock

This type of preferred stock does not entitle its holders to claims on dividends missed in the past if they were not declared in those years.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Dividends

A portion of a company's earnings distributed to shareholders as a reward for their investment.

Par Common Stock

The face value of common shares issued by a company, which is noted on the share certificate.