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Some Top Managers Seek Only Enough Profits to Convince Stockholders

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Some top managers seek only enough profits to convince stockholders that they are "doing a good job." The pricing objective of such managers is:


Definitions:

Factorial Experiment

An experimental setup that investigates the effects of multiple factors by varying them simultaneously and systematically, to analyze their interactions and single effects.

Two-way Factor ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable.

Interact

To act in such a way as to have an effect on another; in statistical terms, it often refers to variables that affect each other’s outcomes.

Two-way ANOVA

An analytical method used to evaluate how two categorical variables influence a continuous dependent variable.

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