Which of the following is the best example of psychological pricing?
A) The local university charges $16,000 for one student for one year of education.
B) Howard has set the price of his luxury RV at $319,000.
C) Eugene wants $350.00 for his heavy-duty chainsaw.
D) Dominic has set the price of his specialty sandwiches at $7.50.
E) Karen is asking $5,999 for her used car.
Answer: E
Explanation: E) Buyers focus on the first digit of a price, so $4,999 seems far cheaper than $5,000. Also, people tend to subconsciously interpret precise numbers as being smaller than round ones.
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Which statement is not true about the constant b in the bivariate regression equation ? i = a + bXi?
A) It is usually referred to as the non-standardized regression coefficient. B) It is the slope of the regression line and it indicates the expected change in Y when X is changed by one unit. C) It is the intercept of the regression line and it indicates the value of Y when X is zero. D) It may be computed as b=COVxy/Sx2.
Which of the following statements is not correct about the alternative hypothesis?
A) There is no way to determine whether the alternative hypothesis is true. B) The alternative hypothesis represents the conclusion for which evidence is sought. C) The alternative hypothesis is the opposite of the null hypothesis. D) None of the statements are correct.