Market Research Data Analysis & Statistics

Question 1

What does a p-value below 0.05 indicate in market research analysis?

Accepted Answer

The result is statistically significant at the 95% confidence level

Answer

A p-value below 0.05 indicates there is less than a 5% probability the results occurred by chance, meeting the standard significance threshold.

Question 2

Which statistical test is most appropriate for comparing means across three or more groups?

Accepted Answer

ANOVA (Analysis of Variance)

Answer

ANOVA is specifically designed to test whether statistically significant differences exist between the means of three or more independent groups.

Question 3

What does 'correlation' measure in market research data analysis?

Accepted Answer

The strength and direction of the linear relationship between two variables

Answer

Correlation measures both the strength and direction of the relationship between two variables, but does not imply causation.

Question 4

In regression analysis, what does the R-squared value represent?

Accepted Answer

The proportion of variance in the dependent variable explained by the independent variables

Answer

R-squared measures the proportion of variance in the outcome variable that is explained by the predictor variables in the regression model.

Question 5

What is 'factor analysis' used for in market research?

Accepted Answer

Reducing a large number of variables into a smaller set of underlying factors

Answer

Factor analysis is a data reduction technique that identifies underlying latent factors explaining patterns of correlations among many observed variables.

Market Research Practice Test

Market Research Practice Test

Market Research Data Analysis & Statistics