Ravi Singh Is Working His Way Through College as an Independent

question 131

Multiple Choice

Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and other special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:

• A) Is part of a direct-to-customer channel.
• B) Is engaged in direct marketing.
• C) Is engaged in direct selling, but is part of an indirect channel.
• D) All of the above.
• E) None of the above.

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Definitions:

Confidence interval estimate

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, given a specified level of confidence.

Standard deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values in a data set are.

Electric usage

The amount of electrical energy consumed by a residence, industry, or equipment in a specific period.

Standard error of the mean

The standard deviation of the sampling distribution of the sample mean, measuring how far the sample mean of the data is likely to be from the true population mean.