Which of the Following Statements Is Not True About Huff

question 80

Multiple Choice

Which of the following statements is not true about Huff Gravity Model?

• A) The model specifies two factors that assess the probability: (1)the attractiveness of the store's location and (2)the time it takes a consumer to travel to the store.
• B) It predicts the probability of a customer going to a specific store location.
• C) The formula indicates that the larger the size of the store compared with competing stores' sizes,the greater the probability that a customer will shop at the location.
• D) It is assumed that a larger size is generally more attractive in consumers' eyes because it means more merchandise assortment and variety.
• E) The greater travel time or distance for the consumer,compared with that of competing locations,the higher probability that the consumer will shop at the location.

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Definitions:

Price Greater Than Zero

A condition where the cost or value assigned to a product or service is above zero, indicating that it is not free.

Overprice

A scenario where the market price of an asset is higher than its intrinsic value due to speculation, misinformation or other factors.

Shareholder

An individual or entity that owns shares in a corporation, thus holding a portion of its equity.

Direct Flotation Costs

Expenses directly incurred by a company when it issues new securities, such as underwriting fees, legal fees, and registration fees.