BM380 Lesson 1 Exam SCORE 100 PERCENT

Question 1
When a researcher is called in after the management has defined the problem, the researcher should:
Question options:

a)     bring in a fresh, unbiased view of the problem statement.


b)     accept management's definition of the problem and start the study.


c)     ensure that the research is done with maximum accuracy in the shortest possible time.


d)     turn the management's statement of the problem into a generally defined research objective.

Question 2
In discussing the structure of the marketing research industry, the textbook authors define an internal supplier firm as one that:
Question options:

a)     makes research decisions based primarily upon information supplied by the internal reports system.


b)     is organized in a staff relationship to other internal departments.


c)     provides syndicated services, but only to members of the syndicate.


d)     has its marketing research provided by an entity, such as a marketing research department, within the firm.

Question 3
Which of the following is a breach of ethics?
Question options:

a)     Extending the time for the conclusion of a research project to meet standards


b)     Seeking help from experts outside the company free-of-cost on nonconfidential matters


c)     Using a company's research proposal for competitive bidding


d)     Seeking the help of researchers outside the company on nonconfidential matters

Question 4
Which of the following statements best illustrates the service-dominant logic for marketing philosophy?
Question options:

a)     Marketing decision makers should know their firm's core competencies.


b)     Marketing decision makers need to know how to precisely measure service satisfaction.


c)     Marketing decision makers must be able to directly impact ROI.


d)     The quality of internal service levels is more important than the quality of external service levels.

Question 5
__________ are statements that are considered true for the purposes of argument or investigation.
Question options:

a)     Maxims


b)     Hypotheses


c)     Aphorisms


d)     Assumptions

Question 6
Information gaps are discrepancies between:
Question options:

a)     the information collected by a researcher and by a marketer.


b)     the information obtained from primary sources and secondary sources.


c)     a researcher's and a manager's information states.


d)     the current information level and the desired level of information.

Question 7
A marketing research proposal contains:
Question options:

a)     important assumptions made by the researcher.


b)     the action standards for a project.


c)     the timetable for a research project.


d)     problem symptoms associated with research.

Question 8
The marketing concept is an important philosophy for marketing managers because it dictates:
Question options:

a)     the amount of quarterly profits a firm will earn.


b)     the market share a firm will earn.


c)     day-to-day decisions that managers will make.


d)     whether or not the firm will reach its sales quota.

Question 9
The definition of a construct that describes the actions to be carried out for the construct to be measured empirically is known as a(n):
Question options:

a)     ostensive definition.


b)     contextual definition.


c)     operational definition.


d)     theoretical definition.

Question 10
Akron's Children's Hospital hired research firm, Marcus Thomas, LLC, to determine the most effective communication messages to use in a new ad campaign being developed by the hospital. This was an effort in:
Question options:

a)     target market selection.


b)     product research.


c)     pricing research.


d)     promotion research.

Question 11
Based on the AMA's definition of marketing research, which of the following is NOT one of the uses of marketing research?
Question options:

a)     To identify and define marketing opportunities and problems


b)     To solve general, not specific, marketing problems


c)     To generate, refine, and evaluate marketing actions


d)     To monitor marketing performance

Question 12
The difference between basic research and applied research is that basic research is conducted to:
Question options:

a)     determine the most appropriate basic price for new products.


b)     determine the most efficient basic distribution channels for products.


c)     expand our knowledge, rather than solve a specific problem.


d)     determine the most basic desired features in new products.

Question 13
Owners/proprietors of small firms are more likely to take advantage of:
Question options:

a)     specialized internal research teams.


b)     research agencies.


c)     informal departments organized around budget categories.


d)     do-it-yourself research.

Question 14
Which of the following professional organizations is devoted to improving the quality of the marketing research industry and to ensuring the future of the marketing research profession?
Question options:

a)     AMA (American Marketing Association)


b)     MRA (Marketing Research Association)


c)     QRCA (Q Research Council & Association)


d)     AAPOR (American Association for Public Opinion Research)

Question 15
Professional organizations try to prescribe ethical behavior for members by creating:
Question options:

a)     representatives in churches to influence future researchers.


b)     codes of ethical behavior.


c)     lobbyists who fight for higher ethical standards in government.


d)     examples of poor ethical behavior in other professions.

Question 16
The key reason that the marketing concept has been recognized as the "right" philosophy is that it:
Question options:

a)     is well-established in marketing literature.


b)     has been recommended by successful marketing executives.


c)     always focuses on the consumer.


d)     does not rely on high-pressure selling.

Question 17
Which of the following is the best definition of marketing research? Marketing research is:
Question options:

a)     the activity of analyzing secondary information and providing executives with timely reports.


b)     the process of designing experiments that provide decision makers with causal information.


c)     the linking of consumers with information managers.


d)     the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

Question 18
Firms that collect information, store it on a common database, and make it available to multiple subscribers are called:
Question options:

a)     internal subscription services.


b)     syndicated data service firms.


c)     packaged services firms.


d)     internal supplier firms.

Question 19
__________ satisfies the need for companies to identify and test new products to replace products which are at the end of their product life cycles.
Question options:

a)     Target market selection


b)     Product research


c)     Distribution research


d)     Promotion research

Question 20
To develop the "right strategy" to succeed in business, managers must make the right decisions; and in order to make the right decisions, they must have objective, accurate, and timely:
Question options:

a)     reports about the competition.


b)     reports about customers' wants and needs.


c)     evidence of the number and sizes of market segments.


d)     information.


Done

BM380 Lesson 2 Exam SCORE 95 PERCENT

Question 1
Question 1
Which of the following is the best description of research design?
Question options:

a)     A set of advance decisions that makes up the master plan specifying the methods and procedures for collecting and analyzing the needed information


b)     A marketing term or concept involved in the marketing management problem that will be researched


c)     The specific pieces of information which are necessary to solve the problem at hand


d)     A list from which sample elements are drawn from the sample, which contains all of the elements in the population being studied

Question 2
A researcher presenting secondary data as if it were primary data collected by the researcher is an egregious example of an ethical lapse in what area of sensitivity in planning research design?
Question options:

a)     Recommending a more costly design than is needed


b)     Designing a study in which data are collected for multiple clients


c)     Misrepresenting sampling methods


d)     Wrongfully gaining respondent cooperation to reduce costs

Question 3
What type of research design does the textbook state should almost always be used in research studies?
Question options:

a)     Causal research


b)     Exploratory research


c)     Explicit research


d)     Exhaustive research

Question 4
The various types of research design include:
Question options:

a)     exploratory, exploitive, and competitive.


b)     deductive, descriptive, and exploitive.


c)     exploratory, causal, and competitive.


d)     exploratory, descriptive, and causal.

Question 5
External secondary data may be grouped into which three sources?
Question options:

a)     Published, syndicated services data, and databases


b)     Published, unpublished data, and other electronic sources


c)     Syndicated services data, external data, and complex data


d)     Fields, records, databases

Question 6
How can it be determined if an experiment is valid?
Question options:

a)     The observed change in the dependent variable is in fact due to the independent variable.


b)     The results of the experiment apply to the real world outside the experimental setting.


c)     The results do not account for the effects of extraneous variables.


d)     Both a and b

Question 7
Which of the following is an objective of research?
Question options:

a)     To gain background information and to develop hypotheses


b)     To measure the state of a variable of interest (for example, level of brand loyalty)


c)     To test hypotheses that specify the relationships between two or more variables (for example, level of advertising and brand loyalty)


d)     All of the above

Question 8
What type of research design should a researcher use if he or she wishes to determine the effect of a change in price on the sales of a particular brand?
Question options:

a)     Causal


b)     Exploitive


c)     Longitudinal


d)     Exploratory

Question 9
Longitudinal studies can be described as techniques that:
Question options:

a)     measure the population at only one point in time.


b)     develop an understanding of a phenomenon in terms of "if-then" conditional statements.


c)     search for and interpret existing information relevant to the research problem.


d)     repeatedly measure the same sample units from the population over a period of time.

Question 10
What type of research design should a marketing researcher use to find out how many customers there are, what brands they buy and in what quantities, which advertisements they recall, what are their attitudes toward the company, and who is the competition?
Question options:

a)     Exploratory research


b)     Descriptive research


c)     Causal research


d)     Explicit research

Question 11
Ray Kroc, a milk-shake machine salesman, noticed that one restaurant in California burned up many milk-shake machines. He inferred that the restaurant was meeting the needs of the market better than other restaurants. His observation illustrates the use of:
Question options:

a)     observational deduction.


b)     exploratory research.


c)     explanatory research.


d)     causal research.

Question 12
All the following are areas of ethical sensitivity in planning research design EXCEPT:
Question options:

a)     recommending a more costly design than is needed.


b)     designing a study in which data are collected for multiple clients.


c)     misrepresenting sampling methods.


d)     basing the research design on the results of secondary data.

Question 13
Which of the following represents an application of secondary data?
Question options:

a)     Predicting broad changes in culture


b)     Selecting a street location for a new car wash


c)     Economic-trends forecasting


d)     All of the above are applications of secondary data.

Question 14
Which of the following was NOT discussed in the textbook as an advantage of using secondary data?
Question options:

a)     May be obtained quickly


b)     May be obtained in any form desired by the researcher


c)     Is relatively inexpensive


d)     Is usually available

Question 15
Which of the following is a potential use of test marketing?
Question options:

a)     To test the sales potential for a new product


b)     To test variations in the marketing mix for a product


c)     To test the sales potential for a new service


d)     All of the above

Question 16
Which of the following would be classified as a part of internal secondary data?
Question options:

a)     Internal database


b)     Online information database


c)     Demographic data within a company's target market


d)     Any government data

Question 17
What type of test marketing should be used when a firm wants to test the product and/or marketing mix variables through the company's normal distribution channels?
Question options:

a)     Controlled test markets


b)     Electronic test markets


c)     Simulated test markets


d)     Standard test markets

Question 18
Which of the following best represents the criteria discussed by the textbook authors to be used in selection of a test market city?
Question options:

a)     Representativeness, isolation, and control of distribution and promotion


b)     Representativeness, isolation, and cost


c)     Representativeness, existing company presence, and control of promotion


d)     Representativeness, cost, and control of competitor's intelligence

Question 19
Packaged services differ from syndicated data services. In the former, each client is provided with:
Question options:

a)     data shared from a common database.


b)     no data.


c)     intermittent service.


d)     the same service as a result of a common process.

Question 20
Appropriate methods for conducting exploratory research would include:
Question options:

a)     secondary data analysis.


b)     experiments.


c)     sample surveys.


d)     longitudinal research.

BM380 Lesson 3 Exam SCORE 100 PERCENT

Question 1
What are some of the problems associated with traditional telephone interviews?
Question options:

a)     Mistakes in administering the questions


b)     Insufficient call back for not-at-homes


c)     Dishonest interviewers


d)     All of the above

Question 2
What is NOT a unique advantage of using person-administered surveys?
Question options:

a)     Feedback


b)     Rapport


c)     Quality control


d)     Speed

Question 3
Which is TRUE regarding a disadvantage of self-administered surveys?
Question options:

a)     Because interviewers are not present, evaluation of the interview is impossible.


b)     The primary burden of respondent understanding is placed on the questionnaire.


c)     The primary burden of respondent understanding is placed on the field editor.


d)     Respondents feel anxious because they control the administration process.

Question 4
Which of the following will increase mail survey response rates?
Question options:

a)     Use of color


b)     Stamps, rather than preprinted postage paid on the return envelopes


c)     Use of a recognizable brand name


d)     Use of an alert letter

Question 5
Which of the following answers represents the four guidelines of question wording?
Question options:

a)     Focused, simple, complete, crystal clear


b)     General, simple, brief, crystal clear


c)     Focused, simple, brief, crystal clear


d)     Focused, elaborate, brief, crystal clear

Question 6
A typical computer-assisted questionnaire design program will assist the designer by offering computerized menus for design issues such as which of the following?
Question options:

a)     The type of question format


b)     The number of response categories


c)     Whether multiple responses are to be used


d)     All of the above features are typically offered.

Question 7
Age, income, gender, and interest in buying product X would all be considered __________ of the consumer, or object.
Question options:

a)     descriptions


b)     properties


c)     subjective descriptors


d)     objectives descriptors

Question 8
Adaptability refers to the ability to react to respondent differences. Which survey method is best suited for adaptability?
Question options:

a)     Computer-administered surveys


b)     Self-administered surveys


c)     Drop-off surveys


d)     Person-administered surveys

Question 9
Which of the following is NOT an advantage of computer-administered surveys?
Question options:

a)     Ability to develop rapport with the respondent


b)     Speed


c)     Error-free interviewing


d)     Use of pictures, videos, and graphics

Question 10
Which of the following scale types best defines a scale measure in which respondents are asked to indicate their degree of agreement or disagreement on a symmetric continuum for each of a series of statements?
Question options:

a)     Semantic differential scale


b)     Nominal scale


c)     Likert scale


d)     Bipolar scale

Question 11
Which type of interview technique offers the advantages of cost, quality, and speed?
Question options:

a)     In-office interview


b)     Telephone interview


c)     Mall-intercept interview


d)     In-home interview

Question 12
Validity is best illustrated by which of the following?
Question options:

a)     Accuracy or truthfulness of the measurement


b)     The extent to which the reliability coefficient approaches 1.0


c)     The ability to repeat measurements


d)     Tendency to respond in the same manner to different questions

Question 13
If the distance between 2 - 3 and 6 - 7 on a scale are equal, the scale would likely be at least:
Question options:

a)     nominal.


b)     ordinal.


c)     interval.


d)     ratio.

Question 14
Some of the major advantages of using online surveys are:
Question options:

a)     easy-to-use SPAMBOTS to collect email addresses, lowering cost and increasing speed.


b)     real-time access to data and availability of many respondents attained by sending out randomly selected emails.


c)     low cost, speed, and sample representativeness.


d)     low cost, speed, and real-time access to data.

Question 15
Which of the following is the MOST accurate statement regarding the importance of the questionnaire in the research process?
Question options:

a)     Relatively speaking, the questionnaire is unimportant in the marketing research process.


b)     Not only is the questionnaire a very important ingredient, but its design affects the quality of the data collected; even experienced interviewers cannot compensate for questionnaire defects.


c)     The questionnaire is tied with the written report as being the most important item in the marketing research process.


d)     Not only is the questionnaire a very important ingredient, but its design affects the quality of the data collected, though experienced interviewers often compensate for questionnaire defects.

Question 16
One disadvantage of mall-intercept interviewing is that:
Question options:

a)     mall-intercepts, because they require the cooperation of all stores in a mall, are difficult to implement.


b)     turnover rates are high.


c)     mall shoppers may not be representative of the target market population.


d)     interviewers in mall-intercept studies are often distracted by mall activities.

Question 17
Which single characteristic is unique to a nominal type of measurement?
Question options:

a)     Description


b)     Order


c)     Distance


d)     Origin

Question 18
Questionnaire organization refers to:
Question options:

a)     the way questionnaires are organized in a filing system.


b)     the sequence of statements and questions that make up a questionnaire.


c)     organizations mainly existing to construct questionnaires.


d)     determining if the question looks right.

Question 19
A leading question is one that:
Question options:

a)     is used to begin the questionnaire and must be carefully worded for ease of response and also for interest.


b)     is used to begin the questionnaire and should address the key issue of the research project in case respondents refuse to answer further questions.


c)     is worded in such a way that gives the respondent a clue as to how to answer and should be avoided.


d)     is worded in such a way that gives the respondent a clue as to how to answer and should be used to help the researcher achieve the desired results.

Question 20
Which type of scale measure takes into account the values and personality traits of people as reflected in their unique activities, interests, and opinions toward their work, leisure time, and purchases?
Question options:

a)     Intensity series scale


b)     Lifestyle inventory


c)     Semantic differential scale


d)     AIO scale

BM380 Lesson 4 & 5 Exam SCORE 98 PERCENT

Lesson 4 Exam
Question 1
Sampling a geographical area using area sampling is a form of:
Question options:

a)     systematic, geographic sampling.


b)     simple random sampling.


c)     nonprobability sampling.


d)     cluster sampling.

Question 2
Simple random sampling is not a wise choice when you have:
Question options:

a)     a large population.


b)     a small population.


c)     a sample frame in electronic format.


d)     a large population that is not in electronic format.

Question 3
If we define our population as all households in the city of Chicago, Illinois, and we use the Chicago telephone directory from which to draw our sample units, we would likely have:
Question options:

a)     a survey with sample frame error.


b)     a representative survey.


c)     a survey containing no errors.


d)     a survey with a poorly defined master list.

Question 4
Reasons for taking a sample instead of a census include:
Question options:

a)     cost.


b)     inability of research firms to handle huge amounts of data generated by a census on a large population.


c)     There is no good reason; a census is preferred over a sample.


d)     A and B

Question 5
It is impossible to determine the probability when using nonprobability methods because:
Question options:

a)     the selection technique is subjective.


b)     the population size is known.


c)     the population size is unknown.


d)     the selection technique is objective.

Question 6
In _______ a sampling, the two-step approach is more costly than the one-step approach because more areas and time are involved.
Question options:

a)     population


b)     area


c)     unit


d)     census

Question 7
The target population for the U.S Census is:
Question options:

a)     all households in the United States.


b)     as many people as can be convinced to fill out the survey.


c)     a certain percentage of the population.


d)     an equal number of people from each region of the United States.

Question 8
A sampling method that separates the population into different subgroups and then samples one or some of these subgroups is:
Question options:

a)     cluster sampling.


b)     simple sampling.


c)     stratified sampling.


d)     systematic sampling.

Question 9
Sampling error is caused by two factors; one of them is:
Question options:

a)     the size of the population.


b)     the method of the sample unit definition.


c)     the method of sample selection.


d)     the method of population selection.

Question 10
In stratified sampling, we should always ensure that the sample drawn for each stratum is:
Question options:

a)     equal.


b)     proportionate to the stratum's proportion of the total population.


c)     of the appropriate size to ensure statistical efficiency.


d)     proportionate to the stratum's proportion of the total census.

Question 11
Which of the following may be used to overcome the problems of unlisted and new telephone numbers in a telephone directory?
Question options:

a)     Systematic sampling


b)     Random digit dialing


c)     CATI systems


d)     A different format

Question 12
Which of the following sample plans would NOT be considered a probability sample?
Question options:

a)     Simple random sample


b)     Systematic sample


c)     Cluster sample


d)     Judgment sample

Question 13
A subset of the population that should represent the entire group is known as a:
Question options:

a)     population.


b)     sample unit.


c)     census.


d)     sample.

Question 14
A master list of all the sample units in the population is known as the:
Question options:

a)     sample list.


b)     population master list.


c)     master frame.


d)     sample frame.

Question 15
One of the reasons systematic sampling is faster than simple random sampling is that the population size:
Question options:

a)     needs to be counted and numbered.


b)     does not need to be known.


c)     may be estimated and each element not numbered.


d)     cannot be known.

Question 16
Calculation of the skip interval is important in which sampling plan?
Question options:

a)     Simple random sample


b)     Systematic sample


c)     "Skip" sample


d)     Cluster sample

Question 17
The __________ used in systematic sampling is computed by dividing the population list size by the sample size.
Question options:

a)     skip interval


b)     representative data


c)     containing error


d)     master list

Question 18
Which of the following is the BEST definition of cluster sampling?
Question options:

a)     The population is divided into subgroups and a simple random sample is taken from each subgroup.


b)     The population is divided into subgroups; subgroups are combined into clusters, and subsets of clusters are sampled.


c)     The population is divided into subgroups and a single/or several subgroup(s) is/are then selected from which either a census or a sample is drawn.


d)     The population is divided into subgroups and a single/or several subgroup(s) is/are then selected from which only a sample is drawn.

Question 19
A sampling method that separates the population into different subgroups and then samples all of these subgroups is:
Question options:

a)     stratified sampling.


b)     area sampling.


c)     cluster sampling.


d)     simple sampling.

Question 20
You should obtain a listing of the population after:
Question options:

a)     defining the relevant population.


b)     accessing the population.


c)     designing the sample plan.


d)     drawing the sample.

Lesson 5 Exam
Question 21
__________ includes a failure on the part of a prospective respondent to take part in the survey, premature termination of the interview, or refusals to answer specific questions on the questionnaire.
Question options:

a)     Nonresponse


b)     Cheating


c)     Misunderstanding


d)     Attention loss

Question 22
You should obtain a listing of the population after:
Question options:

a)     defining the relevant population.


b)     accessing the population.


c)     designing the sample plan.


d)     drawing the sample.

Question 23
Sampling error is caused by two factors; one of them is the:
Question options:

a)     size of the population.


b)     method of the sample unit definition.


c)     method of sample selection.


d)     method of population selection.

Question 24
Which of the following is NOT one of the axioms of sample size and accuracy?
Question options:

a)     The only perfectly accurate sample is a census.


b)     A probability sample will always have some inaccuracy (sample error).


c)     Increasing sample size increases the sample's representativeness.


d)     A probability sample size can be a very tiny percentage of the population size and still be very accurate.

Question 25
Which of the following is the BEST definition of variability?
Question options:

a)     It is the amount of dispersion in a data set containing interval or nominal data.


b)     It is the difference between scores in the present sample and scores in a previous sample.


c)     It is the amount of dissimilarity in ordinal data.


d)     It is the amount of dissimilarity (or similarity) in respondents' answers to a particular question.

Question 26
A sample that has been determined by using a cost basis approach would be when the manager has discussed:
Question options:

a)     the statistical analysis with the research project director.


b)     the competitor's marketing results with the research project director.


c)     the previous marketing study with the research project director.


d)     the budget with the research project director and they have decided to spend "all they can afford" on the project.

Question 27
Which of the following is TRUE regarding probability samples?
Question options:

a)     They are as perfect as a census and contain no errors caused by competitors.


b)     They will always contain some inaccuracy (sample error).


c)     They contain serious mistakes, but can be adjusted by statistical weighting procedures.


d)     They are particularly susceptible to nonsampling errors.

Question 28
Sources of error that come from sources other than the sample selection method and sample size are referred to as:
Question options:

a)     serious mistakes.


b)     nonsampling errors.


c)     errors caused by competitors.


d)     errors caused by clients.

Question 29
__________ errors occur whenever a data collection person willfully violates the data collection requirements set forth by the researcher.
Question options:

a)     Unintentional fieldworker


b)     Intentional respondent


c)     Unintentional respondent


d)     Intentional fieldworker

Question 30
Sample accuracy refers to:
Question options:

a)     the extent to which the sample is validated.


b)     the extent to which the sample statistics differ from the true population values the statistics represent.


c)     the extent to which the population statistics differ from the representativeness of the sample.


d)     a statistical concept that can be assessed only theoretically.

Question 31
What three factors are needed to calculate sample size?
Question options:

a)     Variability, accuracy, and confidence level


b)     Variability, accuracy, and population size


c)     Accuracy, confidence level, and population size


d)     Accuracy, population size, and costs

Question 32
Which of the following is a general type of nonsampling error?
Question options:

a)     Fieldworker error


b)     Clerical error


c)     Forecast error


d)     Continuity error

Question 33
Which of the following is the theory that allows us to say that if we conducted a survey 1,000 times, and we were to plot the answers to our survey, the plot would appear as a normal curve?
Question options:

a)     The central limit theorem


b)     The normal curve theory


c)     The normal limit theorem


d)     The confidence interval theorem

Question 34
Which of the following samples have been determined by using the statistical analysis approach?
Question options:

a)     The sample size needed to properly analyze subgroups


b)     1,000 respondents


c)     Between 1,000 and 1,200 respondents


d)     200 respondents because each interview is $30

Question 35
The sample size determines:
Question options:

a)     representativeness.


b)     accuracy.


c)     representativeness and accuracy.


d)     the population statistic value.

Question 36
When all other factors are held constant, as we increase the level of accuracy, the sample size and the cost of a marketing research survey are best characterized by which of the following?
Question options:

a)     The sample size will increase but the cost will decrease.


b)     The sample size will decrease but the cost will increase.


c)     The sample size and the cost of the survey will increase.


d)     The sample size will remain the same but the cost will increase.

Question 37
__________ is defined as all errors in a survey except those attributable to the sample plan and sample size.
Question options:

a)     Transcriptional error


b)     Sampling risk


c)     Continuity error


d)     Nonsampling error

Question 38
A sample unit could be a:
Question options:

a)     household.


b)     consumer.


c)     purchasing agent.


d)     All of the above

Question 39
Ninety-five percent of the observations under the normal curve fall within __________ times the sample error.
Question options:

a)     ±1.64


b)     ±1.96





c)     ±2.58


d)     ±95

Question 40
Level of confidence in sample size formulae is normally set at:
Question options:

a)     95 percent or 96 percent.


b)     5 percent or 10 percent.


c)     95 percent or 99 percent.


d)     1 percent or 5 percent.

BM380 Lesson 6 & 7 Exam SCORE 100 PERCENT

Lesson 6 Exam
Question 1
Question 1
The __________ holds that our actual sample is one of the many theoretical samples comprising the assumed bell-shaped curve of possible sample results using the hypothesized value as the center of the bell-shaped distribution.
Question options:

a)     standard deviation


b)     sampling distribution concept


c)     standard error of the statistic


d)     hypothesized parameter value

Question 2
Which of the following is NOT used to test hypotheses?
Question options:

a)     Sample statistic (mean or percentage)


b)     Parameter estimate


c)     Standard error of the statistic (mean or percentage)


d)     Hypothesized parameter value

Question 3
Statistical concepts such as t tests of differences and analysis of variance are forms of __________ analysis.
Question options:

a)     differences


b)     association


c)     predictive


d)     inference

Question 4
__________ are concerned with depicting the typical difference between the values in a set of values.
Question options:

a)     Cross-tabulations


b)     Multiple regressions


c)     Standard deviations


d)     Measures of variability

Question 5
The two types of statistical inferences often used by marketing researchers are:
Question options:

a)     frequency distributions and standard deviations.


b)     regression analyses and measures of variability.


c)     parameter estimates and hypothesis tests.


d)     descriptive analyses and predictive analyses.

Question 6
__________ analysis determines the strength and direction of relationships between two or more variables.
Question options:

a)     Differences


b)     Association


c)     Predictive


d)     Inference

Question 7
Which of the following refers to a measure of the variability in the sampling distribution based on what is theoretically believed to occur if we were to take a multitude of independent samples from the same population?
Question options:

a)     Multiple variance analysis


b)     Variance


c)     Standard error


d)     Predictive analysis

Question 8
The __________ is a descriptive analysis measure defined as that value in a string of numbers that occurs most often.
Question options:

a)     uncertainty


b)     contrast


c)     mode


d)     mean

Question 9
Suppose we wish to test the hypothesis that an internship program allows its interns to earn $2,750 per semester and let us assume that this hypothesis is, in fact, true. Which of the following best illustrates the logic of hypothesis testing at the 95% confidence level?
Question options:

a)     From among 100 samples, 95 percent of them would generate means that fell within ±1.96 z scores.


b)     From among 99 samples, 100 percent of them would generate means that fell within ±2.58 z scores.


c)     From among 100 samples, 95 percent of them would generate means that fell within ±2.58 z scores.


d)     From among 100 samples, 99 percent of them would generate means that fell within ±1.96 z scores.

Question 10
Statistical procedures and models are available to the marketing researcher to help make forecasts about future events, and these fall under the category of __________ analysis.
Question options:

a)     differences


b)     association


c)     predictive


d)     inference

Question 11
The square of standard deviation is known as:
Question options:

a)     a median.


b)     variance.


c)     standard deviation.


d)     sample size.

Question 12
Statistical concepts such as range and standard deviation are forms of __________ analysis.
Question options:

a)     differences


b)     association


c)     predictive


d)     descriptive

Question 13
The proper command sequence in SPSS to generate a confidence interval for a mean is:
Question options:

a)     ANALYZE-COMPARE MEANS-ONE-SAMPLE T TEST.


b)     ANALYZE-COMPARE MEANS-MEANS.


c)     ANALYZE-COMPARE MEANS-PAIRED SAMPLE T TEST.


d)     ANALYZE-COMPARE MEANS-INDEPENDENT SAMPLE T TEST.

Question 14
The __________ identifies the distance between lowest value and the highest value in an ordered set of values.
Question options:

a)     median


b)     variance


c)     standard deviation


d)     range

Question 15
________ is defined as the process of describing a dataset by computing a small number of statistics that characterize various aspects of the data.
Question options:

a)     Data normalization


b)     Data mining


c)     Data analysis


d)     Data coding

Question 16
Multiple regression is a form of __________ analysis.
Question options:

a)     difference


b)     association


c)     relationships


d)     inference

Question 17
__________ analysis is used by marketing researchers to describe the sample dataset in such a way as to portray the typical respondent and to reveal the general pattern of responses.
Question options:

a)     Differences


b)     Association


c)     Predictive


d)     Descriptive

Question 18
A demographic question such as "What is your gender?" should have which of the following central tendency measure for the responses?
Question options:

a)     Mode


b)     Variance


c)     Median


d)     Range

Question 19
A demographic question such as "On a scale of 1 to 5, how does Starbucks rate on variety of its coffee drinks?" should have which of the following central tendency measure for the responses?
Question options:

a)     Mode


b)     Variance


c)     Median


d)     Mean

Question 20
A 99 percent confidence interval allows us to say that if we took many samples from the population:
Question options:

a)     the whole sample would contain a range that included the population parameter.


b)     99 percent of all the samples would contain a range that included the population parameter.


c)     99 percent of all the samples would allow us to estimate the mean within ±1 percent.


d)     1 percent of all the samples would contain a range that included the population parameter.

Lesson 7 Exam
Question 21
Iams marketing over 20 different types of dog food, Toyota marketing over 20 different types of cars, and Boeing having five different types of commercial jets and a separate business jets division are all examples of:
Question options:

a)     differing markets strategy.


b)     marketing variation.


c)     market segmentation.


d)     market separation.

Question 22
Which type of relationship is described by relationships that may be S-shaped or J-shaped?
Question options:

a)     Causal relationship


b)     Linear relationship


c)     Curvilinear relationship


d)     Nonmonotonic relationship

Question 23
Which of the following is NOT part of the advantages that ANOVA has over performing multiple t tests of the significance of the differences between means?
Question options:

a)     It immediately notifies the researcher if there is any significant difference.


b)     All the researcher needs to do is look at the "Sig."


c)     It arranges the means so the significant differences can be located.


d)     SPSS will only do ANOVA tests, not t tests of the differences between means.

Question 24
To be useful to the marketing researcher or manager, differences must be:
Question options:

a)     meaningful.


b)     stable.


c)     actionable.


d)     All of the above

Question 25
We know that McDonald's customers drink coffee for breakfast and soft drinks at lunch. This is an example of what type of relationship?
Question options:

a)     Causal relationship


b)     Linear relationship


c)     Monotonic relationship


d)     Nonmonotonic relationship

Question 26
The owner of a shoe store knows that as children increase in age, their shoe size tends to get larger. This is an example of what type of relationship?
Question options:

a)     Causal relationship


b)     Duotonic relationship


c)     Monotonic relationship


d)     Nonmonotonic relationship

Question 27
What is used to determine whether a nonmonotonic relationship exists between two nominal-scaled variables?
Question options:

a)     Tabulation analysis and t tests


b)     Cross-tabulation and chi-square tests


c)     Cross-tabulation and t tests


d)     Tabulation analysis and chi-square tests

Question 28
Let's assume there are juniors, seniors, and graduate students in your class and we want to know if their average GPAs differ. What is the proper statistical test?
Question options:

a)     t test


b)     means/differences test


c)     Levene's test


d)     ANOVA

Question 29
A meaningful difference is one that the marketing manager:
Question options:

a)     can potentially use as a basis for marketing decisions.


b)     deems to be statistically significant.


c)     finds to be at a ratio of 2 to 1.


d)     finds to be stable over at least a week or so.

Question 30
To test whether a true difference exists between two group percentages, we test the __________ hypothesis.
Question options:

a)     z


b)     t


c)     z or t hypothesis; it does not matter


d)     null

Question 31
The fact that different segments of flu or cold sufferers will consistently seek different medications targeted at their symptoms (sore throat, nasal congestion, cough, etc.) illustrates the use of differences that are:
Question options:

a)     significant.


b)     meaningful.


c)     stable.


d)     actionable.

Question 32
Fortunately, when testing for differences, you will not need to be concerned whether to use the t or z test because:
Question options:

a)     the z is easier to calculate and to interpret and should always be used.


b)     the t is more widely known among statisticians and should always be used.


c)     assumptions of the z and t are minimal and are of concern only to statisticians.


d)     SPSS, and most statistical software packages, are programmed to use the correct statistic.

Question 33
In order to be potentially useful for a marketing manager, differences must at minimum be:
Question options:

a)     at a ratio of 2 to 1.


b)     statistically significant.


c)     new and not part of existing knowledge.


d)     at a ratio of 10 to 1.

Question 34
Which BEST represents the correct meaning of statistical significance of differences?
Question options:

a)     The differences found in sample data may be found in other sample data.


b)     The differences found in sample data may be assumed to exist in the remainder of the sample.


c)     The differences found in the sample may be assumed to exist in the population.


d)     The differences found in the population may be assumed to exist in the sample.

Question 35
A cross-tabulation table is sometimes referred to as a:
Question options:

a)     tabular table.


b)     nonmonotonic display table.


c)     r x c table.


d)     t x n table.

Question 36
The t value is used for many tests instead of the z value because:
Question options:

a)     it is easier to calculate and to interpret.


b)     it is more widely known among statisticians.


c)     assumptions of the z value are violated if sample size is 30 or less.


d)     it is available on statistical software packages.

Question 37
The four basic types of relationships between two variables are:
Question options:

a)     nonmonotonic, duotonic, linear, and curvilinear.


b)     nonmonotonic, duotonic, sublinear, and curvilinear.


c)     nonmonotonic, monotonic, linear, and curvilinear.


d)     causal, consistent, systematic, and linear.

Question 38
You do not have a "relationship" that links the labels (or levels) for two variables unless the relationship is:
Question options:

a)     causal and consistent.


b)     consistent and systematic.


c)     systematic and causal.


d)     systematic and important.

Question 39
In your textbook, you learn to test for significant differences between:
Question options:

a)     two percentages or two means.


b)     two percentages or three percentages.


c)     two means or three percentages.


d)     three or more percentages.

Question 40
If you were to find a significant association between two nominally scaled variables, a good way to present the findings in your cross-tabulation table would be to use:


Question options:

a)     a p value for each nonmonotonic relationship found.


b)     a Sig. value for each nonmonotonic relationship found.


c)     graphical presentations.


d)     numerical presentations that clearly indicate the direction and strength of the relationship.

BM380 Lesson 8 Exam SCORE 95 PERCENT

Question 1
Which of the following is acceptable in a marketing research report table of contents?
Question options:

a)     Letter of authorization numbered with Arabic numerals


b)     Introduction pages are not numbered


c)     Executive summary listed with Arabic numerals


d)     Title page not listed

Question 2
Research is conducted to determine which recipe of cookie mix is most preferred. Cookie recipe "D" has the highest preference ratings among four cookie mixes tested. The report states that cookie mix "D" should replace all existing recipes as soon as possible. This last sentence is:
Question options:

a)     a recommendation.


b)     a conclusion.


c)     information that should be included in the front matter.


d)     a method.

Question 3
Signals that indicate the topics of each section and act like signals and signposts along the "road" of a marketing research report are referred to as:
Question options:

a)     headings and subheadings.


b)     tables of contents.


c)     tables.


d)     visuals.

Question 4
In the Chart Editor screen, right-click and select Properties Window. This window allows each of the following except:
Question options:

a)     fill and border


b)     size


c)     3-D elements


d)     truncated graph

Question 5
Which of the following is NOT a part of the front matter?
Question options:

a)     Introduction


b)     Title page


c)     Table of contents


d)     Abstract/executive summary

Question 6
Which type of visual introduces a set of topics and illustrates their relationships?
Question options:

a)     Table


b)     Picture


c)     Flow diagram


d)     Bar graph

Question 7
Which of the following identifies exact values?
Question options:

a)     Tables


b)     Pictures


c)     Maps


d)     Graphs

Question 8
Reporting of the details as to how the research was conducted is contained in the:
Question options:

a)     method section.


b)     conduct of research section.


c)     appendix.


d)     body.

Question 9
An aid to the reader in finding specific information that serves to graphically portray what is being said is referred to as:
Question options:

a)     list of appendices.


b)     list of illustrations.


c)     table of contents.


d)     list of tables.

Question 10
Which level heading should be left-justified, upper- and lower- case?
Question options:

a)     First


b)     Second


c)     Third


d)     Fourth

Question 11
Which of these items provides an overview, or "skeleton," of the research report including conclusions and recommendations?
Question options:

a)     Table of contents


b)     Title page


c)     Appendix


d)     Executive summary

Question 12
Research is conducted to determine which recipe of cookie mix is most preferred. Cookie recipe "D" has the highest preference ratings among four cookie mixes tested. This is:
Question options:

a)     a recommendation.


b)     a conclusion.


c)     information that should be included in the front matter.


d)     a method.

Question 13
Which section of the marketing research report contains the major portion of the report and presents the findings of the research?
Question options:

a)     Method


b)     Body


c)     Results


d)     Conclusions

Question 14
Which of the following would be included in the marketing research report introduction?
Question options:

a)     Title


b)     Executive summary


c)     Research objectives


d)     Results

Question 15
Which of the following would help the reader locate information in the research report?
Question options:

a)     Letter of transmittal


b)     Executive summary


c)     Table of contents


d)     Introduction

Question 16
The body of the report does NOT contain the:
Question options:

a)     conclusions.


b)     executive summary.


c)     introduction.


d)     results.

Question 17
A factual message that transmits research results, vital recommendations, conclusions, and other information to the client, who in turn uses the information as a basis for decision making, is known as:
Question options:

a)     article summary.


b)     marketing research report.


c)     body report.


d)     advancement report.

Question 18
Pie charts are particularly useful for illustrating:
Question options:

a)     relative size or static comparisons.


b)     items over time.


c)     detail.


d)     relationships found in the data.

Question 19
The letter of transmittal is used:
Question options:

a)     instead of delivering the document.


b)     to deliver the document.


c)     to deliver the document to a client outside the firm.


d)     to deliver the document within the firm.

Question 20
Which of the following examples may result in an unethical visual presentation of research findings?
Question options:

a)     If time is a variable, placing it on the horizontal axis


b)     Eliminating the scales on an axis


c)     Using a histogram rather than a pictogram


d)     Illustrating how many respondents refused to answer the question as part of the visual

BM380 Week 6 Threaded Discussion

Indicate what data analysis is and why it is useful.

BUSI502 Week 2 Assignment 3

Read the Case Study 3-2, The FBI. Answer the following questions: 

• What do you think were the real reasons why the VCF system failed?
• What were the points of alignment and misalignment between the Information Systems Strategy and the FBI organization?
• What do you think of the CIO's final comment about how to change attitudes? Do you think it will work? Why or why not?
• If you were the CIO, what would you do to help the FBI modernize and make better use of information technology?
  

BUSI502 Week 2 Article review

Article Review of Article:

Does Your Organization Culture Meet your Business Strategy?

 

BUS340 DISCUSSION BOARD ASSIGNMENT 1

BUS340 DISCUSSION BOARD ASSIGNMENT 1

Conduct research on the topic of workforce diversity and describe what organizations are currently doing to address the issue.  Your textbook and the Penn Foster online library are good starting points.  Also the following sites are good reference sources for articles related to the topic: www.shrm.org/hrmagazine and www.findarticles.com.  In order to use the "FindArticles" site you will need to register. You can search thousands of free articles.

 

BUS340 DISCUSSION 4

Conflict between employees or between employee and supervisor exists in many organizations.  What role does communication play in workplace conflict and what are some strategies for reducing conflict?  Your textbook and the Penn Foster online library are a good starting point.  Also the following sites are good reference sources for articles related to the topic: www.shrm.org/hrmagazine and www.findarticles.com.  In order to use the "FindArticles" site you will need to register. You can search thousands of free articles.

BUS213 DISCUSSION 2 and BUS213 DISCUSSION 5

Explain the Constitutional rights of a corporation? What is the objective of piercing the corporate veil?

 

What is the nature of and the need for a social media policy?

 

BUS 475 - Startegic Plan Part-I Conceptualize business

Write a 1,150- to 1,400-word paper in which you explain the importance of your selected business's vision, mission, and values in determining your strategic direction. Please do not write about an existing business. Create a new business and include the following: My new business I discussed is a Caribbean Restaurant in Orlando, FL

•Define your business, products or services, and customers by developing a mission statement. Ensure that you are differentiating your product or service.

•Create a vision for this organization that clearly demonstrates your decision on what you want your business to become in the future.

•Define your guiding principles or values for your selected business considering the topics of culture, social responsibility, and ethics.
•Analyze how the vision, mission, and values guide the organization's strategic direction.

•Evaluate how the organization addresses customer needs and critique how they achieve competitive advantage.

BUi530 Week 6 Discussion 9

Staff members who work at a women's medical clinic are required to provide clients with information about various community resources available to them on a variety of medical conditions. Some of the resources include information regarding abortions. One staff member claims that her religious beliefs do not permit her to provide information about abortions, which is against her religion. The director of the clinic claims it would cause an undue hardship to accommodate her religious beliefs. 

• What are your thoughts?

BU350 Your Name M03 Assignment 05 Journal Article Review

M03 – Organizational Behavior

Journal Article Review

 

Journal Article

For this assignment, you will select an article from the Journal of Organizational Behavior.  You can find this journal through the Ashworth Library in ProQuest.  The link is located in the Course Introduction on the Library page. 

You will write a 500-750 word review of the article. Your article needs to discuss or investigate one or more aspects of organizational behavior as it relates to your Final Project topic; it does not need to be comprehensive. The article should be one written within the last decade, unless you have prior approval from your professor.

In your article review, complete the following tasks.

• At the top of the page, cite the article's source using APA style.
• Then, answer these four questions, in one paragraph each:
• What did you learn?
• What surprised you?
• What do you want to learn more about?
• How might you apply what you learned to your Final Project in this course?

Note:  If you cannot find a relevant article in Journal of Organizational Behavior, these other journals are also acceptable.  Before selecting an alternative journal, please contact your instructor for approval.

• Organizational Behavior and Human Decision Processes
• Journal of Occupational and Organizational Psychology
• Journal of Leadership and Organizational Studies
• Organizational Psychology Review

Download the template provided for you.  Save your work using the file name provided just adding your name in place of "your name"

 

 

 

BU340 Week 6 Threaded Discussion

Compare the primary market to the secondary market.

BU340 Lesson 8 Exam SCORE 100 PERCENT

Online Exam 8
Question 1        0 / 5 points
Which of the statements below is true?
Question options:

Investors want to maximize return and maximize risk.

Investors want to maximize return and minimize risk.  (*This is correct)

Investors want to minimize return and maximize risk.

Investors want to minimize return and minimize risk.
Question 2        5 / 5 points
The practice of not putting all of your eggs in one basket is an illustration of:
Question options:

variance.

diversification.

portion control.

expected return.
Question 3        5 / 5 points
The security market line has:
Question options:

a positive slope.

a negative slope.

no slope.

a beta of 1.0.
Question 4        5 / 5 points
Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4%, what is the expected return for Benson Industries?
Question options:

13%

10%

9%

4%
Question 5        5 / 5 points
For most stocks, the correlation coefficient with other stocks is:
Question options:

positive.

negative.

zero.

The distribution of correlation coefficients between stocks is uniform from -1.0 to +1.0.
Question 6        5 / 5 points
Stocks A, B, C, and D have standard deviations, respectively, of 20%, 5%, 10%, and 15%. Which one is the riskiest?
Question options:

Stock A

Stock B

Stock C

Stock D
Question 7        5 / 5 points
Travis bought a share of stock for $31.50 that paid a dividend of $.85 and sold six months later for $27.65. What was his dollar profit or loss and holding period return?
Question options:

-$3.00, -9.52%

-$3.85, -12.22%

-$.85, -2.70%

-$3.85, -9.52%
Question 8        5 / 5 points
__________ may be defined as a measure of uncertainty in a set of potential outcomes for an event in which there is a chance for some loss.
Question options:

Diversification

Risk

Uncertainty

Collaboration
Question 9        5 / 5 points
The __________ is the intercept on the security market line.
Question options:

prime rate

risk-free rate

market rate of return

beta
Question 10        5 / 5 points
Which of the following investments is considered to be default risk-free?
Question options:

Currency options

AAA-rated corporate bonds

Common stock

Treasury bills
Question 11        5 / 5 points
Correlation, a standardized measure of how stocks perform relative to one another in different states of the economy, has a range from:
Question options:

0.0 to +10.0.

0.0 to +1.0.

-1.0 to +1.0.

There is no range; correlation is a calculated number that can take on any value.
Question 12        5 / 5 points
Jarvis bought a share of stock for $15.75 that paid a dividend of $.45 and sold three months later for $18.65. What was his dollar profit or loss and holding period return?
Question options:

$2.90, 18.41%

$3.35, 21.27%

-$2.90, -18.41%

$.45, 2.86%
Question 13        5 / 5 points
Find the variance for a security that has three one-year returns of 5%, 10%, and 15%.
Question options:

10%

16.67%

25%

30%
Question 14        5 / 5 points
Find the variance for a security that has three one-year returns of -5%, 15%, and 20%.
Question options:

175%

75%

58.33%

25%
Question 15        5 / 5 points
Use the following table:
States of the Economy    Probability of the State    3-Month T-Bill    Large-Company Stock    Small-Company Stock
Boom    0.3    4    10    30
Steady    0.5    4    5    20
Recession    0.2    4    0    10
What is the difference between the variances for large- and small-company stocks?
Question options:

40.25%

36.75%

27.30%

14.90%
Question 16        5 / 5 points
The correlation coefficient, a measurement of the comovement between two variables, has what range?
Question options:

From 0.0 to +10.0

From 0.0 to +1.0

From -1.0 to +10.0

From =1.0 to -1.0
Question 17        0 / 5 points
Stock    A    B    C    D
Expected Return    5%    5%    7%    6%
Standard Deviation    10%    12%    12%    11%
Which of the following statements is true?
Question options:

A is a better investment than B.

B is a better investment than C.

C is a better investment than D.

D is a better investment than C.
Question 18        5 / 5 points
Unsystematic risk:
Question options:

is also known as nondiversifiable risk.

can be diversified away.

is system-wide risk.

is equal to 2 times the systematic risk.
Question 19        5 / 5 points
Which of the following statements is true about variance?
Question options:

Variance describes how spread out a set of numbers or values are around its mean or average.

Variance is essentially the variability from the average.

The larger the variance, the greater the dispersion.

All of the above statements are true.
Question 20        5 / 5 points
Assume the following information about the market and JumpMasters' stock. JumpMasters' beta = 1.50, the risk-free rate is 3.5%, the market risk premium is 10%. Using the SML, what is the expected return for JumpMasters' stock?
Question options:

7.5%

13.5%

18.5%

27%

BU340 Lesson 6 & 7 Exam SCORE 95 PERCENT

Online Exam 6
Question 1        2.5 / 2.5 points
Moody's has developed a corporate bond default-risk rating system using capital and lowercase letters and numbers. Below are several examples of Moody's ratings. Which answer choice lists a collection of ratings for "high credit investment grade" bonds?
Question options:

Baa1, A1, A3

Ba1, Baa2, Baa3

Aa2, Aa3, A1

Caa, Ca, C
Question 2        2.5 / 2.5 points
A bond is a __________ instrument by which a borrower of funds agrees to pay back the funds with interest on specific dates in the future.
Question options:

long-term equity

long-term debt

short-term debt

short-term equity
Question 3        2.5 / 2.5 points
When a company is in financial difficulty and cannot fully pay all of its creditors, the first lenders to be paid are the:
Question options:

stockholders.

sinking fund holders.

juniordebtholders.

seniordebtholders.
Question 4        2.5 / 2.5 points
The __________ is the regular interest payment of the bond.
Question options:

dividend

par

coupon rate

coupon
Question 5        2.5 / 2.5 points
As the rating of a bond increases (for example, from A, to AA, to AAA), it generally means that:
Question options:

the credit rating increases, the default risk increases, and the required rate of return decreases.

the credit rating increases, the default risk decreases, and the required rate of return increases.

the credit rating increases, the default risk decreases, and the required rate of return decreases.

the credit rating decreases, the default risk decreases, and the required rate of return decreases.
Question 6        2.5 / 2.5 points
The __________ is the interest rate printed on the bond.
Question options:

coupon rate

semiannual coupon rate

yield to maturity

compound rate
Question 7        2.5 / 2.5 points
The difference between the price and the par value of a zero-coupon bond represents:
Question options:

taxes payable by the bond buyer.

the accumulated principal over the life of the bond.

the bond premium.

the accumulated interest over the life of the bond.
Question 8        2.5 / 2.5 points
Bonds are sometimes called __________ securities because they pay set amounts on specific future dates.
Question options:

variable-income

fixed-income

bully

real
Question 9        2.5 / 2.5 points
From 1980 to 2006, the default risk premium differential between Aaa-rated bonds and Aa-rated bonds has averaged between:
Question options:

50 to 150 basis points.

90 to 190 basis points.

120 to 220 basis points.

250 to 350 basis points.
Question 10        2.5 / 2.5 points
"Junk" bonds are a street name for __________ grade bonds.
Question options:

investment

speculative

extremely speculative

speculative and investment
Question 11        2.5 / 2.5 points
When the __________ is less than the yield to maturity, the bond sells at a/the __________ the par value.
Question options:

coupon rate; premium over

coupon rate; discount to

time to maturity; discount to

time to maturity; same price as
Question 12        2.5 / 2.5 points
Delagold Corporation is issuing a zero-coupon bond that will have a maturity of 50 years. The bond's par value is $1,000, and the current yield on similar bonds is 7.5%. What is the expected price of this bond, using the semiannual convention?
Question options:

$25.19

$250.19

$750

$1,000
Question 13        2.5 / 2.5 points
When real property is used as collateral for a bond, it is termed a/an:
Question options:

debenture.

mortgaged security.

indenture.

senior bond.
Question 14        2.5 / 2.5 points
Zero-coupon U.S. Government bonds are known as:
Question options:

STRIPS.

muni-bonds.

Uncle Sam's Empty Pockets.

BLANKS.
Question 15        2.5 / 2.5 points
With a bearer bond, whoever held it was entitled to the __________ and the __________.
Question options:

interest payments; principal

dividend payments; principal

interest payments; dividend payments

interest payments; voting rights
Question 16        2.5 / 2.5 points
Espresso Petroleum Inc. has a contractual option to buy back, prior to maturity, bonds the firm issued five years ago. This is an example of what type of bond?
Question options:

Putable bond

Callable bond

Convertible bond

Junior bond
Question 17        2.5 / 2.5 points
Which of the following is NOT an example of a bond that contains an option feature?
Question options:

Callable bond

Putable bond

Convertible bond

The above are all examples of bonds with option features.
Question 18        2.5 / 2.5 points
The __________ is the expiration date of the bond.
Question options:

future value

yield to maturity

maturity date

coupon
Question 19        2.5 / 2.5 points
The __________ is the annual coupon payment divided by the current price of the bond, and is not always an accurate indicator.
Question options:

current yield

yield to maturity

bond discount rate

coupon rate
Question 20        2.5 / 2.5 points
Which of the following statements about the relationship between yield to maturity and bond prices is false?
Question options:

When the yield to maturity and coupon rate are the same, the bond is called a par value bond.

A bond selling at a premium means that the coupon rate is greater than the yield to maturity.

When interest rates go up, bond prices go up.

A bond selling at a discount means that the coupon rate is less than the yield to maturity.
Online Exam 7
Question 21        2.5 / 2.5 points
The __________ is the market of first sale in which companies first sell
their authorized shares to the public.
Question options:

primary market

secondary market

bull market

Nasdaq market
Question 22        2.5 / 2.5 points
Which of the statements below is true?
Question options:

The profits for common stock owners come after payment to the employees, suppliers, government, and creditors.

Shareholders elect the board of directors, which ultimately selects the bondholder team that runs the day-to-day operations of the company.

Stock is a minor financing source for public companies.

Stockholders are paid before debtholders (bondholders) if a company fails.
Question 23        2.5 / 2.5 points
__________ means that the percentage increase in the dividend is the same each year.
Question options:

Constant growth

Inconsistent growth

No growth

A constant cash flow
Question 24        2.5 / 2.5 points
Which of the statements below is true?
Question options:

A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks.

A problem with using the dividend growth model is that it produces a negative expected return whenever a firm cuts dividends.

A problem with using the dividend growth model is that it produces a positive expected return whenever a firm cuts dividends.

A problem with using the dividend growth model is that it produces a negative expected return whenever a firm increases its dividends.
Question 25        2.5 / 2.5 points
If we know the dividend stream, the future price of the stock, the future selling date of the stock, and the required return, we can price stocks just as we priced:
Question options:

annuities.

perpetuities.

bonds.

preferred stocks.
Question 26        2.5 / 2.5 points
Which of the statements below is FALSE? Answer:
Question options:

The dividend model requires that a firm have a cash dividend history and that the dividend history shows a constant dividend or a positive growth in dividends.

A problem with using the dividend growth model is that it appears to underestimate the expected return for some stocks.

A problem with using the dividend growth model is that it produces a negative expected return whenever a firm cuts its dividends.

A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks.
Question 27        2.5 / 2.5 points
You can think of the __________ as the "used stock" market because these shares have been owned or "used" previously.
Question options:

secondary market

primary market

NYSE market

initial public offering market
Question 28        2.5 / 2.5 points
The hiring process for an investment banker can happen in two ways. Which of the below is one of these ways?
Question options:

Randomly choose an investment banking firm from a list of underwriting firms.

Pick a desirable investment banking firm, usually basing the choice on the reputation and history of the banker in its particular industry.

Have the primary government regulator of your industry choose the best investment banking firm for your company.

Solicit advice from a government agency and use it as your primary guide in choosing an investment banker.
Question 29        2.5 / 2.5 points
Strong-form efficient markets theory proclaims that:
Question options:

one can chart historical stock prices to predict future stock prices such that you can identify mispriced stocks and routinely outperform the market.

one can exploit publicly available news or financial statement information to routinely outperform the market.

current prices reflect the price and volume history of the stock, all publicly available information, and all private information.

current prices reflect the price and volume history of the stock, all publicly available information, but no private information.
Question 30        2.5 / 2.5 points
You buy a stock for which you expect to receive an annual dividend of $2.10 for the 15 years that you plan on holding it. After 15 years, you expect to sell the stock for 32.25. What is the present value of a share for this company if you want a 10% return?
Question options:

$7.72

$15.97

$23.69

$31.41
Question 31        2.5 / 2.5 points
You want to invest in a stock that pays $6 annual cash dividends for the next five years. At the end of the five years, you will sell the stock for $30. If you want to earn 10% on this investment, what is a fair price for this stock if you buy it today?
Question options:

$41.37

$40.37

$22.75

$18.63
Question 32        2.5 / 2.5 points
A typical practice of many companies is to distribute part of the earnings to shareholders through:
Question options:

quarterly stock splits.

quarterly cash dividends.

semiannual cash dividends.

annual stock dividends.
Question 33        2.5 / 2.5 points
Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive than the dividend models and provides expected returns for companies based on aspects besides their historical dividend patterns. Which of the below is NOT one of these aspects?
Question options:

The company's risk

The premium for taking on risk

The reward for waiting

Stable dividends
Question 34        0 / 2.5 points
__________ has to do with the speed and accuracy of processing a buy or sell order at the best available price.
Question options:

Market efficiency

Mechanical efficiency

Informational efficiency

Operational efficiency
Question 35        2.5 / 2.5 points
Which of the statements below is FALSE?
Question options:

In estimating the current price using the constant growth dividend <br /> model, we let g be the growth rate on the dividend stream and r be the <br /> rate of return required by the potential buyer of the stock.

Constant growth means that the percentage increase in the dividend is <br /> the same each year.

<p>Div₀ refers to the dividends that were just been paid to the current owner of the stock.</p>

One unlikely dividend pattern is to raise or grow dividends by a fixed <br /> amount at fixed intervals.
Question 36        2.5 / 2.5 points
In the United States, there are three well-known secondary stock markets. Which of the below is NOT one of these?
Question options:

The New York Stock Exchange (NYSE)

The Chicago Stock Exchange (CSE)

The National Association of Securities Dealers and their trading system NASDAQ (National Association of Securities Dealers Automated Quotation System)

The American Stock Exchange (AMEX)
Question 37        2.5 / 2.5 points
Stocks are different from bonds because:
Question options:

stocks, unlike bonds, are major sources of funds.

stocks, unlike bonds, represent residual ownership.

stocks, unlike bonds, give owners legal claims to payments.

bonds, unlike stocks, represent voting ownership.
Question 38        2.5 / 2.5 points
Which of the statements below is FALSE?
Question options:

The profits for common stock owners come before payment to employees, suppliers, government, and creditors.

Shareholders elect the board of directors, which ultimately selects the management team that runs the day-to-day operations of the company.

Stock is a major financing source for public companies.

Common stock's ownership claim on the assets and cash flow of a company is often referred to as a residual claim.
Question 39        0 / 2.5 points
Which of the statements below is true?
Question options:

Buying of shares is the selling of ownership in the company.

A company is said to go &quot;private&quot; when it opens up its ownership structure to the general public through the sale of common stock.

Private companies choose to sell stock to attract permanent financing through equity ownership of the company.

Most companies have the resident expertise to complete an initial public offering (IPO), or first public equity issue.
Question 40        2.5 / 2.5 points
Which of the statements below is FALSE?
Question options:

If an investor purchases 20% of the initial issue of the company, the investor then owns 20% of the company, given the one vote/one share norm.

After an initial offering, the company can sell more shares to the public at a later date. If the investor who originally purchased 20% does not purchase 20% of the subsequent issue, his or her ownership is diluted below 20%.

A preemptive right enables one to maintain one's proportional level of ownership.

A preemptive right is never particularly valuable to shareholders with large ownership percentages.

BU340 Lesson 4 & 5 Exam SCORE 95 PERCENT

Question 1        2.5 / 2.5 points
You have saved $47,000 for college and wish to use $15,000 per year. If you use the money as an ordinary annuity and earn 6.15% on your investment, how many years will your annuity last? Use a calculator to determine your answer.
Question options:

4.27 years

3.13 years

3.59 years

3.36 years
Question 2        2.5 / 2.5 points
An annuity is a series of:
Question options:

variable cash payments at regular intervals across time.

equal cash payments at regular intervals across time.

variable cash payments at different intervals across time.

equal cash payments at different intervals across time.
Question 3        2.5 / 2.5 points
If you borrow $100,000 at an annual rate of 8% for a 10-year period and repay the total amount of principal and interest due of $215,892.50 at the end of 10 years, what type of loan did you have?
Question options:

Amortized loan

Interest-only loan

Discount loan

Compound loan
Question 4        2.5 / 2.5 points
The main variables of the TVM equation are:
Question options:

present value, future value, time, interest rate, and payment.

present value, future value, perpetuity, interest rate, and payment.

present value, future value, time, annuity, and interest rate.

present value, future value, perpetuity, interest rate, and principal.
Question 5        2.5 / 2.5 points
You just won the Publisher's Clearing House Sweepstakes and the right to 20 after-tax ordinary annuity cash flows of $163,291.18. Assuming a discount rate of 7.50%, what is the present value of your lottery winnings? Use a calculator to determine your answer.
Question options:

$3,265,823.60

$1,789,520.81

$1,664,670.52

There is not enough information to answer this question.
Question 6        2.5 / 2.5 points
You have just won the Reader's Digest lottery of $5,000 per year for 20 years, with the first payment today followed by 19 more start-of-the-year cash flows. At an interest rate of 5%, what is the present value of your winnings?
Question options:

$100,000

$65,426.60

$62,311.05

$47,641.18
Question 7        2.5 / 2.5 points
What is the future value in Year 12 of an ordinary annuity cash flow of $6,000 per year at an interest rate of 4% per year?
Question options:

$90,154.83

$93,761.02

$28,675.97

$32,117.08
Question 8        2.5 / 2.5 points
What is the present value of a stream of annual end-of-the-year annuity cash flows if the discount rate is 0%, and the cash flows of $50 last for 20 years?
Question options:

Less than $1,000

Exactly $1,000

More than $1,000

This question cannot be answered because we have an interest rate of 0%.
Question 9        2.5 / 2.5 points
Which is greater, the present value of a $1,000 five-year ordinary annuity discounted at 10%, or the present value of a $1,000 five-year annuity due discounted at 10%?
Question options:

The ordinary annuity is worth more with a present value of $3,790.79.

The annuity due is worth more with a present value of $4,169.87.

The ordinary annuity is worth more with a present value of $4,169.87.

The annuity due is worth more with a present value of $4,586.85.
Question 10        2.5 / 2.5 points
What is the future value in Year 25 of an ordinary annuity cash flow of $2,000 per year at an interest rate of 10% per year?
Question options:

$66,505.81

$55,000.00

$196,694.12

$216,363.53
Question 11        2.5 / 2.5 points
Given the following cash flows, what is the future value at Year 6 when compounded at an interest rate of 8%?
Year    0    2    4    6
Cash Flow    $5,000    $7,000    $9,000    $11,000
Question options:

$38,955.39

$56,687.43

$42,074.42

$32,000
Question 12        2.5 / 2.5 points
If you borrow $100,000 at an annual rate of 8% for a 10-year period and repay with 10 equal annual end-of-the-year payments of $14,902.95, then you have just repaid what type of loan?
Question options:

Amortized loan

Interest-only loan

Discount loan

Compound loan
Question 13        2.5 / 2.5 points
Randy W. recently won the Western States Lottery of $6,500,000. The lottery pays either a total of twenty $325,000 payments per year with the first payment today (i.e., an annuity due), or $3,500,000 today. At what interest rate would Randy be financially indifferent between these two payout choices?
Question options:

5.37%

7.36%

7.76%

8.00%
Question 14        2.5 / 2.5 points
What type of loan makes interest payments throughout the life of the loan and then pays the principal and final interest payment at the maturity date?
Question options:

Amortized loan

Interest-only loan

Discount loan

Compound loan
Question 15        0 / 2.5 points
If you borrow $50,000 at an annual interest rate of 12% for six years, what is the annual payment (prior to maturity) on an interest-only type of loan?
Question options:

$0

$6,000

$8,333.33

$12,161.29
Question 16        2.5 / 2.5 points
If for the next 40 years you place $3,000 in equal year-end deposits into an account earning 8% per year, how much money will be in the account at the end of that time period?
Question options:

$120,000.00

$777,169.56

$839,343.12

$2,606,942.58
Question 17        2.5 / 2.5 points
If you borrow $100,000 at an annual rate of 8% for a 10-year period and repay the interest of $8,000 at the end of each year prior to maturity and the final payment of $108,000 at the end of 10 years, then you have just repaid what type of loan?
Question options:

Amortized loan

Interest-only loan

Discount loan

Compound loan
Question 18        0 / 2.5 points
Your firm intends to finance the purchase of a new construction crane. The cost is $1,500,000. How large is the payment at the end of Year 10 if the crane is financed at a rate of 8.50% as a discount loan?
Question options:

$228,611.56

$127,500

$3,391,475.16

There is not enough information to answer this question.
Question 19        2.5 / 2.5 points
Present value calculations do which of the following?
Question options:

Compound all future cash flows into the future

Compound all future cash flows back to the present

Discount all future cash flows back to the present

Discount all future cash flows into the future
Question 20        2.5 / 2.5 points
A/An __________ is a series of cash flows at regular intervals across time.
Question options:

annuity

annuity due

perpetuity due

None of the above
Online Exam 5
Question 21        2.5 / 2.5 points
Assume that Don is 45 years old and has 20 years for saving until he retires. He expects an APR of 8.5% on his investments. How much does he need to save if he puts money away annually in equal end-of-the-year amounts to achieve a future value of $1 million in 20 years' time?
Question options:

$20,570.00

$20,670.97

$20,770.90

$20,800.00
Question 22        2.5 / 2.5 points
The phrase "price to rent money" is sometimes used to refer to:
Question options:

historical prices.

compound rates.

discount rates.

interest rates.
Question 23        2.5 / 2.5 points
Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 5%. What is your investment worth in one year?
Question options:

$1,025.00

$1,500.95

$1,025.27

$1,050.95
Question 24        2.5 / 2.5 points
James is a rational investor wishing to maximize his return over a 20-year period. The current yield curve is inverted with one-year rates at 5% and 20-year rates at 3.5%. James will invest in the lower-rate 20-year bonds if:
Question options:

he thinks rates will fall in the future and locking in long-term rates today may provide the highest long-run average return.

he thinks rates will rise in the future and locking in long-term rates today may provide the lowest long-run average return.

he thinks rates will remain flat at 5% in the future and locking in long-term rates today will prevent him from appearing greedy to those without this investment opportunity.

James has no idea what to do and should just skip this question.
Question 25        2.5 / 2.5 points
Suppose you deposit money in a certificate of deposit (CD) at a bank. Which of the following statements is true?
Question options:

The bank is borrowing money from you without a promise to repay that money with interest.

The bank is lending money to you with a promise to repay that money with interest.

The bank is technically renting money from you with a promise to repay that money with interest.

The bank is lending money to you, but not borrowing money from you.
Question 26        2.5 / 2.5 points
Assume you just bought a new home and now have a mortgage on the home. The amount of the principal is $150,000, the loan is at 5% APR, and the monthly payments are spread out over 30 years. What is the loan payment? Use a calculator to determine your answer.
Question options:

$798.95

$805.23

$850.32

$903.47
Question 27        2.5 / 2.5 points
The two major components of the interest rate that cause rates to vary across different investment opportunities or loans are:
Question options:

the default premium and the bankruptcy premium.

the liquidity premium and the maturity premium.

the default premium and the maturity premium.

the inflation premium and the maturity premium.
Question 28        2.5 / 2.5 points
You put down 20% on a home with a purchase price of $300,000. The down payment is thus $60,000, leaving a balance owed of $240,000. The bank will loan you the remaining balance at 4.28% APR. You will make annual payments with a 20-year payment schedule. What is the annual annuity payment under this schedule?
Question options:

$18,100.23

$22,625.29

$12,000.00

$33,785.23
Question 29        2.5 / 2.5 points
Nominal interest rates are the sum of two major components. These components are:
Question options:

the real interest rate and expected inflation.

the risk-free rate and expected inflation.

the real interest rate and default premium.

the real interest rate and the T-bill rate.
Question 30        2.5 / 2.5 points
When interest rates are stated or given for loan repayments, it is assumed that they are __________ unless specifically stated otherwise.
Question options:

daily rates

annual percentage rates

effective annual rates

APYs
Question 31        2.5 / 2.5 points
The __________ compensates the investor for the additional risk that the loan will not be repaid in full.
Question options:

default premium

inflation premium

real rate

interest rate
Question 32        2.5 / 2.5 points
If you take out a loan from a bank, you will be charged:
Question options:

for principal but not interest.

for interest but not principal.

for both principal and interest.

for interest only.
Question 33        2.5 / 2.5 points
Which of the following statements is true if you increase your monthly payment above the required loan payment?
Question options:

The extra portion of the payment does not go to the principal.

You can significantly increase the number of payments needed to pay off the loan.

The extra portion of the payment increases the principal.

You can significantly reduce the number of payments needed to pay off the loan.
Question 34        2.5 / 2.5 points
We can write the true relationship between the nominal interest rate and the real rate and expected inflation as which of the following?
Question options:

(1 + r) = (1 + r) × (1 + h*)

r = (1 + r*) × (1 + h) - 1

r* = (1 + r) × (1 + h) -1

r = (1 + r*) × (1 + h) + 1
Question 35        2.5 / 2.5 points
Assume that you are willing to postpone consumption today and buy a certificate of deposit (CD) at your local bank. Your reward for postponing consumption implies that at the end of the year:
Question options:

you will be able to consume fewer goods.

you will be able to buy the same amount of goods or services.

you will be able to buy fewer goods or services.

you will be able to buy more goods or services.
Question 36        2.5 / 2.5 points
The typical payments on a consumer loan are made at:
Question options:

the end of each day.

the end of each week.

the end of each month.

the beginning of each month.
Question 37        2.5 / 2.5 points
What is the EAR if the APR is 10.52% and compounding is daily?
Question options:

Slightly above 10.09%

Slightly below 11.09%

Slightly above 11.09%

Over 11.25%
Question 38        2.5 / 2.5 points
Suppose you invest $2,000 today, compounded monthly, with an annual interest rate of 7.5%. What is your investment worth in one year?
Question options:

$2,150

$2,152.81

$2,155.27

$2,154.77
Question 39        2.5 / 2.5 points
Suppose you postpone consumption so that by investing at 8% you will have an extra $800 to spend in one year. Suppose that inflation is 4% during this time. What is the approximate real increase in your purchasing power?
Question options:

$800

$600

$400

$200
Question 40        2.5 / 2.5 points
Which of the following statements is true?
Question options:

On many calculators the TVM key for interest is I/Y; this is Interest per Year, or the EAR rate.

On many calculators the TVM key for interest is Y/I; this is Interest per Year, or the APR rate.

On many calculators the TVM key for interest is I/Y; this is Interest per Year, or the APR rate.

On many calculators the TVM key for a period is I/Y.