Deck 18: A: Multivariate Data Analysis

Question 1

An insurance company wants to know whether the subscribers to its HMO,PPO,or traditional single indemnity plan exhibit better health characteristics.They have the following data for each of their subscribers: % of body weight over optimum weight;blood pressure;cholesterol and hours per week of exercise.The analysis will group subscribers as either healthy,somewhat healthy or not healthy.Which of the following would be the best procedure for making such a determination?

A)factor analysis
B)multiple discriminant analysis
C)multiple regression analysis
D)cluster analysis

Answer 1

D

Question 2

If a product manager wanted to see how his company's products are rated by consumers against competing products across several dimensions,the best procedure would be:

A)conjoint analysis.
B)multiple regression analysis.
C)perceptual mapping.
D)cluster analysis.

Answer 2

C

Question 3

Summarizing a number of survey questions into a single concept could be achieved with which type of analysis?

A)factor analysis
B)multiple discriminant analysis
C)multiple regression analysis
D)cluster analysis

Answer 3

A

Question 4

Which of the following techniques might be most useful in helping a restaurant determine how to position itself in the marketplace?

A)factor analysis
B)multiple regression analysis
C)conjoint analysis
D)perceptual mapping

Question 5

What is multivariate analysis?

A)a procedure for managing large database systems.
B)synonymous with decision support analysis.
C)a group of statistical procedures used to analyze simultaneously multiple measurements of the individual or object being measured.
D)the measurement procedure for monitoring how several marketing variables function in multiple market situations.

Question 6

A company that is trying to determine which 3 distinct target markets to focus its marketing efforts on might use which statistical tool?

A)ANOVA
B)multiple regression analysis
C)cluster analysis
D)bivariate regression

Question 7

Which of the following techniques is often used for concept testing of new products?

A)conjoint analysis
B)multiple regression analysis
C)perceptual mapping
D)cluster analysis

Question 8

This procedure is useful for analyzing the relationship among two or more predictor/independent variables and one criterion/dependent variable.

A)multiple discriminant analysis
B)multiple regression analysis
C)conjoint analysis
D)cluster analysis

Question 9

______________ is a measure of the percentage of the variation in the dependent variable that is explained by the variation in the independent variables.

A)Discriminant weights
B)Factor loadings
C)Coefficient of determination
D)Coefficient of correlation

Question 10

The coefficient of determination is normally associated with which of the following multivariate procedures?

A)multiple regression analysis
B)factor analysis
C)conjoint analysis
D)cluster analysis

Question 11

A dependent variable is coded 1=respondent did purchase and 0=respondent did not purchase.Independent variables include various demographic and lifestyle characteristics of the respondents.The goal of the analysis is to determine how respondents who did purchase are different from respondents who did not purchase.Which of the following procedures goes with the preceding description?

A)multiple discriminant analysis
B)multiple regression analysis
C)cluster analysis
D)perceptual mapping

Question 12

Independent variables are important components in multiple regression analysis and ________________.

A)multiple discriminant analysis
B)factor analysis
C)conjoint analysis
D)cluster analysis

Question 13

Cluster analysis is particularly valuable for what type of marketing strategy?

A)product differentiation
B)positioning
C)segmentation
D)none of the above

Question 14

Which of the following would not be an application best suited for multiple regression analysis?

A)estimating the relationship between various demographic and lifestyle variables and the attitude toward a particular product
B)determining which variables best predict the sales of a particular product or service
C)estimating the effect of several marketing mix variables on product sales
D)reducing a large number of potential predictor variables to a smaller set of composite variables

Question 15

Which of the following multivariate procedures does not include a dependent variable in its analysis?

A)multiple regression analysis
B)cluster analysis
C)multiple discriminant analysis
D)None of the above procedures includes a dependent variable.

Question 16

Suppose an analyst wanted to determine whether or not dollars spent on advertising,number of sales people,number of new products introduced,and dollars spent on research and development were contributing to the growth in company market share.Which of the following procedures would be most appropriate?

A)conjoint analysis
B)cluster analysis
C)multiple regression analysis
D)perceptual mapping

Question 17

Which of the following is not a step in conjoint analysis?

A)collecting trade-off data
B)estimating factor loadings
C)estimating preference structures
D)predicting consumers' choice

Question 18

Which of the following is multiple discriminant analysis most similar to?

A)multiple regression analysis
B)factor analysis
C)conjoint analysis
D)cluster analysis

Question 19

Dummy variables created to include nominally scaled variables in an analysis are commonly used in:

A)multiple discriminant analysis.
B)factor analysis.
C)conjoint analysis.
D)multiple regression analysis.

Question 20

Cluster analysis produces mutually exclusive and exhaustive groups such that the individuals or objects grouped are ______________ within and ______________ between groups.

A)homogeneous;heterogeneous
B)homogeneous;homogeneous
C)heterogeneous;homogeneous
D)heterogeneous;heterogeneous

Question 21

In a perceptual map,the brands that are closer to each other are perceived to be _____________ and the brands that are farther apart are perceived to be _____________.

A)similar;different
B)similar;in direct competition
C)in direct competition;equal in performance
D)different;in direct competition

Question 22

If the goal is to classify business travelers into distinct groups based on their responses to 20 questions on preferences to mode of transportation,hotel accommodation,and ethnic food,which of the following techniques would be most appropriate?

A)multiple regression analysis
B)conjoint analysis
C)cluster analysis
D)factor analysis

Question 23

Data mining typically involves four classes of task.Which is not one of the tasks?

A)Clustering
B)Classification
C)Numbering
D)Modeling

Question 24

In factor analysis,the correlation between factor scores and the original variables is known as the factor ________,

A)loading
B)mapping
C)attribute rating
D)conjoint

Question 25

All of the following are techniques for multivariate analysis procedure except ________.

A)Cluster analysis
B)Factor analysis
C)Conjoint analysis
D)Bivariate Regression analysis

Question 26

An analyst will always prefer that the R² be close to zero.

Question 27

The goal of factor analysis is to identify as many factors as possible.

Question 28

This analytical technique helps determine what features a new product or service should have and how it should be priced.

A)factor analysis
B)perceptual mapping
C)multiple discriminant analysis
D)conjoint analysis

Question 29

Collinearity is a situation in which independent variables are heavily correlated with each other.

Question 30

If the goal of an analysis is to group respondents into mutually exclusive and collectively exhaustive subgroups,the preferred procedure would be cluster analysis.

Question 31

In the multiple regression formula,which of the following represents the dependent variable?

A)Y
B)a
C)b1
D)X1

Question 32

In the case of multiple regression analysis,the dependent variable must be ___________;in multiple discriminant analysis,the dependent variable is__________ in nature.

A)Metric;nonmetric
B)Metric;nominal
C)Nominal;categorical
D)Categorical;nonmetric

Question 33

Multivariate techniques analyze relationships between more than 2 variables.

Question 34

There is no dependent variable in a factor analysis.

Question 35

In multiple regression analysis the dependent variable is nominal or categorical.

Question 36

Multiple regression enables the researcher to show that two variables are causally related.

Question 37

The independent variables in multiple regression should not be correlated with each other.

Question 38

In order to make valid comparisons of regression coefficients,the coefficients must be scaled in the same units,or be standardized.

Question 39

Multiple regression analysis can group respondents into subgroups when there are at least 4 classification variables.

Question 40

The purpose of factor analysis can be best described as:

A)data simplification by summarizing the information contained in a large number of variables into summary measures.
B)presenting the relationship between multiple categorical measures in a low-dimensional diagram.
C)assessing the significance of group differences across many metric dependent variables simultaneously.
D)assessing the degree of correlation of a group of categorical measures.

Question 41

In factor analysis,naming factors is a somewhat subjective step,combining intuition and knowledge of the variables with an inspection of the variables that have high loadings on each factor.

Question 42

Perceptual mapping enables a company to see how its brand compares with others in the minds of consumers.

Question 43

An analyst is trying to group together persons who attend theatre performances and who prefer a dinner to accompany the theatre performance.Hence,the two pieces of information are 1)frequency of attending theatre performances and 2)preference for a dinner-theatre format.What type of analysis should be undertaken to determine if those persons preferring the dinner-theatre format are those who attend theatre performances more frequently?

Question 44

Data mining does not draw upon statistics,artificial intelligence,database management,and computer science to identify patterns in market data sets.

Question 45

If a company was interested in the impact that advertising and sales price had on sales,cluster analysis would be an appropriate tool to use.

Question 46

A client wanted to know which preventive health care information (PHC)sources were related to each other.The following table has factor loadings for 10 types of preventive health care information using a Varimax rotation.Based on the table of results below,what would you tell your client?

Question 47

Cluster analysis is useful for clustering groups of questions together into factors.

Question 48

A client has a data set that would be appropriate for a linear model.He wants the resulting model to predict whether or not a person would buy a particular product.The client has been advised that a multiple regression analysis would be the best approach.What would you suggest?

Question 49

In multiple regression,the value of R² is influenced by the number of predictor variables relative to sample size.

Question 50

Multiple discriminant analysis is useful when the dependent variable is metric.

Question 51

Suppose a marketer was trying to predict the sales (Y)of a product for a given level of advertising (X₁)and sales performance (X₂).The resulting output was as follows:
Y = 2,300 + 34(X₁)+ 15.5(X₂)with a R² = .12
Given the above results,what would you suggest to the marketer?

Question 52

An advertising agency has been doing work for a client selling widgets.The three-month campaign has produced a low correlation between advertising expenditures and sales for its client.Hence,the client is considering firing the ad agency.The ad agency counters that consumer sales are not a fair assessment of the effectiveness of the ad campaign after only three months.They counter with an analysis of advertising expenditures in relation to number of requests for information about the widgets;number of distributors stocking widgets;and number of retailers requesting shipments of widgets.The ad agency has a database with such information.What kind of analysis would best assist the ad agency in making their case for the effectiveness of their ad campaign?