Regarding Sales Force Compensation Methods

question 121

Multiple Choice

Regarding sales force compensation methods:

• A) combination plans provide some security and some incentive.
• B) straight commission avoids the need to consider a sales quota.
• C) straight salary provides the most incentive.
• D) sales quotas play no role in any of the methods.
• E) None of these alternatives is correct.

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Definitions:

T-distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.

Regression Coefficients

Values that represent the amount of change in the dependent variable for a one-unit change in an independent variable in a regression analysis.

Stepwise Regression

A method of regression analysis in which the choice of predictive variables is carried out by an automatic procedure, often involving the selection of variables based on statistical criteria.

Independent Variables

Variables in statistical models that are manipulated or categorized to observe their effect on dependent variables.