Advertising Spending as a Percent of Sales Dollars Is Lowest

question 87

Multiple Choice

Advertising spending as a percent of sales dollars is lowest for:

• A) shoes.
• B) soap and detergent.
• C) plastics.
• D) soft drinks.
• E) perfume.

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Definitions:

Independence of Irrelevant Alternatives

A principle in decision theory stating that the preference between two options should not change because of the introduction of new alternatives.

Median Voter

A theoretical concept that suggests the outcome of a majority vote is most likely to represent the preferences of the voter who is in the middle of the political spectrum.

Majority Rule

A decision rule that selects alternatives which have a majority, that is, more than half the votes.

Median Voter Theorem

A political science theory suggesting that the outcome of a majority-vote election is most likely to represent the preferences of the median voter.