An Investigation of the Effectiveness of a Training Program to Improve

question 86

Multiple Choice

An investigation of the effectiveness of a training program to improve customer relationships included a pre-training and post-training customer survey. To compare the differences, they computed (post-training survey score - pre-training survey score) . Seven customers were randomly selected and completed both surveys. The results follow: Was the training effective in improving customer relationships when tested at a 0.05 level of significance?

• A) Reject the null hypothesis and conclude that the training was effective.
• B) Reject the null hypothesis and conclude that the training was ineffective.
• C) Fail to reject the null hypothesis and conclude that mean survey scores are the same.
• D) Fail to reject the null hypothesis and conclude that the mean survey scores are not equal.

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Definitions:

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.