When You Begin to Work with a Data Set, You

question 7

Multiple Choice

When you begin to work with a data set, you should:

• A)examine the context within which the data were collected.
• B)aim to understand the context of the problem you are trying to solve.
• C)look at graphs and summaries of quantitative data.
• D)All of the answer options are correct.

Determine the economic value to the customer and how it influences pricing strategies.

Understand the impact of fixed and variable costs on net operating income.

Analyze the relationship between price change percentages and required sales volume changes to maintain net operating income.

Understand the relevance of a product’s useful life and operating costs in pricing decisions.

---

Definitions:

Attribution Theory

A theory that holds that people look for two causes to explain the behavior of others: internal attributions, which are personal characteristics of others, and external attributions, which are situational factors.

Behavior

The actions, reactions, and functioning of an individual or group in response to external and internal stimuli, observed in various contexts.

Halo Effect

A perception problem through which we form a positive or negative bias of an individual based on our overall impressions of that person.

Perceptual Distortion

A psychological phenomenon where an individual's perception or understanding of reality is inaccurately altered by cognitive biases or environmental factors.