Socioeconomic Variables Are Among the Most Important Bases to Be

question 7

Essay

Socioeconomic variables are among the most important bases to be considered when segmenting markets.Comment on the major issues that might be faced when making the decision on whether to use per capita GDP or GNP as a country segmentation criterion.

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Definitions:

Tchebysheff's Theorem

A statistical theorem that provides a bound on the probability that the value of a random variable deviates from its mean by more than a certain multiple of its standard deviation.

Standard Deviations

Measures the amount of variation or dispersion from the mean in a set of data points.

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all data will fall within three standard deviations (denoted as sigma) of the mean.

Numerical Descriptive Measures

Statistics that quantitatively describe or summarize features of a collection of information, such as mean, median, mode, and range.