A Marketing Researcher Estimates That All the Users and Potential

question 26

Multiple Choice

A marketing researcher estimates that all the users and potential users of a special industrial tool might buy about $600,000 worth next year. The marketing manager for one firm that sells the tools knows that her company sold $80,000 worth of tools last year and that her profits will be about 10 percent of sales. The market potential in this case is probably about:

• A) $16,000
• B) $600,000
• C) $80,000
• D) $8,000

---

Definitions:

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values from the mean.

Finite Population Correction Factor

A factor applied in sample size formulae to adjust for the effect of sampling without replacement from a finite population.

Mean Salary

The average amount of money earned by employees in a specific job, industry, or region, calculated by summing all salaries and dividing by the number of employees.

Standard Error

An estimate of the statistical accuracy of an estimate, showing how much the sample mean is expected to vary from the true population mean.