31) Now is NOT an ethical consideration in surveys using cellphones? A) cellphone surveys are inherently unsafe B) cellphone surveys are have the same ethical considerations as landline surveys C) cellphone surveys are unevenly expensive for responses D) most cellphone surveys are not brief E) cellphone users are disproportionately nonadults 32) Incidence rate refers to: A) the percent of individuals in the sample who qualify to take the survey. B) the percent of people who qualify as members of the sample frame error. C) the percent of people not on a list who qualify as members of the sample frame error. D) the percent of people who have been previously sampled. E) the percent of mistakes made in sampling. 33) Eddie Livingston is president of Community Credit, a credit union with several locations. Eddie has been exploring the impact of service satisfaction with financial performance and is convinced that he can improve the credit union’s returns if he can improve customer satisfaction. He has been contemplating a proposal from Re$earch Inc., a research firm that specializes in the financial services industry, to begin a program of improving customer satisfaction. Tanner has recommended a survey of customers to establish gaps in service as perceived by the customers. Eddie knows that the credit union has a list of all the customers and that this information is on an electronic database complete with mailing addresses and, for those having Internet service, email addresses. At the next meeting, Eddie expresses concern that sending a questionnaire to all bank customers is an inconvenience to them and he doesn’t want to negatively impact customer satisfaction. The researchers from Re$earch assure Eddie that they can get the needed information for as few as a couple of hundred customers and that the results will be representative of all his credit union customers. Which of the following sample methods would most likely be appropriate? A) simple random sample B) judgment sample C) stratified sample D) cluster, area sample E) systematic sample 34) Tata Motors of India is marketing a new vehicle that retails for only $2,200. The vehicle will carry two persons and has a body made of fiberglass. It is designed in component parts so that if a part is broken, you can easily remove the part and replace it with a new one ordered from Tata. Tata realizes that it will take some time for countries to allow the small vehicle on public roads due to the varying safety requirements. However, Tata sees an immediate market among business firms who need inexpensive yet reliable vehicles to transport personnel around large manufacturing or warehousing facilities. One Tata manager stated: “Ninety percent of the time, company cars are used to transport only one or two persons and much of their travel is confined to the plant premises.” “The new Tata vehicle will not replace the large company cars but can reduce the number of company cars a firm must buy by a substantial amount, thus saving tremendous amounts of money.” Executives at Tata are interested in a sales estimate in Great Britain, their first targeted market outside of India. They will construct a sales forecast based upon a survey of companies and they know that demand will vary substantially, depending on the size of the company. Small firms will not want any vehicles, medium-sized firms may want about 5 or 10 vehicles, and large firms may want 20 to 100 vehicles. Secondary data is available that allows Tata to identify all firms in Great Britain and to know the size of the firm. If a survey is conducted to predict demand for the new Tata vehicle among business firms, which of the following sampling methods would be most appropriate? A) simple random sample B) judgment sample C) stratified sample D) cluster, area sample E) systematic sample 35) Leslie Loewen is an entrepreneur with a small business in Steinbach, Manitoba. Working with a local engineer/inventor, Leslie has developed a new cooking device that she thinks will revolutionize cooking. The device is a small oven that is portable and uses a gas injection system to cook meals in a fraction of the time taken in a normal oven. The new system creates a very high temperature and the gas jets are located 360 degrees around the food to be cooked, thus ensuring that the food is cooked equally on all sides. Leslie and the engineer applied for a patent and then immediately sought a relationship with a large manufacturer to produce and distribute the new oven. To her surprise, when she demonstrated it to the top three manufacturers, they all had the same reaction: “We are very interested in this new invention but we would like to see some consumer research that tells us what consumers think about the device.” “Will they think the temperature is too high and represents a safety issue?” “Do they really think that a roast cooked in 6 minutes will taste the same as one roasted for 2 hours?” “How much, if any, will they be willing to pay for the added convenience of time savings?” Leslie sought the services of Prairie Research Inc. (PRI) was an established research firm in the city and they recommended that they use the downtown mall in order to conduct some research that allowed consumers to use the device and taste the food cooked in the device. Leslie agreed but was concerned about the types of persons in the shopping mall. “They really won’t represent our area since they will likely be mostly female and they will have higher incomes than the general population.” PRI assured Leslie that this could be overcome by using which of the following sampling methods? A) quota sample B) purposive sample C) stratified sample D) representative sample E) systematic sample 36) Unfortunately, many managers falsely believe that: A) sample size is related to proper data analysis. B) sample size is related to the representativeness of the sample. C) sample size is determined by computer programs. D) sample size is an irrelevant “statistical” technicality issue. E) sample size is related to the level of accuracy desired. 37) The sample size determines: A) representativeness B) accuracy C) representativeness and accuracy D) the population statistic value E) the mean generated from the sample statistic 38) Which of the following does the textbook note as the proper way to calculate sample size? A) using a percentage of population formula B) using the price-value formula C) using a 1:10 ratio on sampling frame D) using the “100” for local study; “1,000” for national study approach E) using the confidence interval formula 39) Nonresponse refers to: A) the number of questions that are not answered in a survey. B) the failures by qualified respondents to take part in the survey. C) the number of people in the population that were not asked to respond. D) the phone numbers called during plus-one dialing that are not true phone numbers. E) the percent of individuals in the sample who do not qualify to take the survey. 40) If we were to graph the relationship of sample size (x-axis) to sample accuracy (y-axis), we would notice that: A) There is a linear relationship between size and accuracy. B) Accuracy increases quickly, up to about sample size 500, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 2,000. C) Accuracy increases quickly, up to about sample size 5,000, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 200,000. D) Accuracy increases quickly, up to about sample size 50, and then accuracy levels off with relatively small gains made even when sample size is increased to as much as 100. E) We cannot graph just sample size and accuracy because we must also include the level of confidence and the variability within the sample data.