The 80/20 Rule Suggests That

question 27

Multiple Choice

The 80/20 rule suggests that

• A) 20 percent of marketing effort is wasted.
• B) 80 percent of marketing effort is well implemented, but the remaining 20 percent is out of control.
• C) 80 percent of the business comes from 20 percent of the customers.
• D) it will take 80 percent more effort to get 20 percent more business.
• E) None of these is true.

Discuss alternatives to bankruptcy and their benefits.

Understand the concept of selection bias and its impact on research findings.

Differentiate between correlation and causation in statistical studies.

Identify examples of survivor bias in research scenarios.

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Definitions:

Business Spending

The expenditure by businesses on goods and services, including capital goods and labor.

Consumer Spending

The total amount of money spent by consumers on goods and services within an economy.

Recession

Cyclical economic contraction that lasts for six months or longer.

Deregulation

Regulatory trend toward elimination of legal restraints on competition in industries previously served by a single firm in an attempt to improve customer service and lower prices through increased competition.