CMA Market Research & Data Analysis 3 — Questions and Answers
Question 1: A analyst runs a cross-tabulation and applies a chi-square test. What is the chi-square test used to evaluate?
- Whether the mean of a variable equals a hypothesized value
- Whether there is a statistically significant association between two categorical variables (Correct answer)
- Whether two continuous variables are correlated
- Whether a dataset follows a normal distribution
Correct answer: Whether there is a statistically significant association between two categorical variables
The chi-square test of independence determines if there is a significant relationship between two categorical variables in a contingency table.
Question 2: Which of the following best describes 'concurrent validity' in a market research measurement instrument?
- The instrument measures what it theoretically is supposed to measure
- Scores on the instrument correlate with scores on an established instrument administered at the same time (Correct answer)
- The instrument produces consistent results over repeated administrations
- Different items on the instrument measuring the same construct produce similar scores
Correct answer: Scores on the instrument correlate with scores on an established instrument administered at the same time
Concurrent validity is established when a new measure correlates highly with a recognized, established measure given simultaneously.
Question 3: A market research firm uses a panel of 2,000 consumers tracked over 12 months. This is best described as a:
- Cross-sectional study
- Longitudinal study (Correct answer)
- Experimental design
- Ethnographic study
Correct answer: Longitudinal study
A longitudinal study follows the same subjects over an extended time period to observe changes and trends.
Question 4: Which analytical technique is used to reduce a large number of correlated variables into a smaller set of uncorrelated components?
- Cluster analysis
- Conjoint analysis
- Factor analysis (Correct answer)
- Discriminant analysis
Correct answer: Factor analysis
Factor analysis identifies underlying latent factors that explain the correlations among a large set of observed variables.
Question 5: When designing a questionnaire, 'double-barreled questions' should be avoided because:
- They make the survey too long
- They ask about two issues simultaneously, making responses ambiguous (Correct answer)
- They reveal the hypothesis to respondents
- They use technical jargon unfamiliar to respondents
Correct answer: They ask about two issues simultaneously, making responses ambiguous
Double-barreled questions combine two distinct issues in one question, so it's impossible to know which issue the respondent is answering.
Question 6: A Type II error in hypothesis testing occurs when a researcher:
- Rejects a true null hypothesis
- Fails to reject a false null hypothesis (Correct answer)
- Sets an alpha level that is too high
- Collects a sample that is too large
Correct answer: Fails to reject a false null hypothesis
A Type II error (false negative) means failing to detect a real effect that actually exists in the population.
Question 7: In market segmentation research, 'psychographic' variables refer to:
- Age, income, and education level
- Geographic region and population density
- Lifestyle, values, attitudes, and personality traits (Correct answer)
- Purchase frequency and brand loyalty
Correct answer: Lifestyle, values, attitudes, and personality traits
Psychographic segmentation groups consumers based on psychological characteristics such as lifestyle, values, and personality.
CMA Market Research & Data Analysis 3
A analyst runs a cross-tabulation and applies a chi-square test.
What is the chi-square test used to evaluate?