Marketing Analytics Coursera Quiz Answers

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Week 1:Marketing Analytics

Quiz 1: The Marketing Process

Q1. The start-up company you work for wants you to create the marketing process. What’s the first step you should take to develop the marketing process?

• Analyze financials
• Create objectives
• Establish a strategy
• Develop tactics

Q2. When setting your strategy, what is the first step to determining which customers align with your objective?

• Targeting
• Segmentation
• Product
• Positioning

Q3. Between 1988 and 1997, Camel cigarettes featured a cute cartoon camel on the packs and in commercials. What type of strategy is this considered?

• Targeting
• Segmentation
• Positioning
• Context

Q4. You work for a sunscreen company looking to expand its market share in the Pacific Northwest, which is famous for its rainy climate. Your sunscreen has a unique, chemical-free formula with proven longer water resistance. Which step in the marketing process should you focus on first?

• Strategy
• Tactics
• Objectives
• Financials

Q5. During exams week here at the University of Virginia, many coffee vendors set up carts in high-traffic student areas. One cart prominently displays “Fair Trade Certified.” What type of strategy are they using?

• Marketing
• Positioning
• Segmentation
• Targeting

Quiz 2: Data Analytics Basics

Q1. The football season at the University of Virginia has started and ticket sales are low. The university asks for your help developing new marketing to draw in local Charlottesville residents to the games. You find a website with reviews of the team, the stadium, and the concessions. What’s your next step?

• Review the financials.
• Attend a game to get a “gut feel” for whether to focus on marketing the team, stadium or concessions.
• Find the review sentiment score using R software.
• Determine what tactic you’ll need.

Q2. You work for a video streaming service and run text analytics on the reviews of your service and of your competitors. You discover a variety of factors that are important to your customers, all of which match your intuition except for one. Which output of the data analysis is surprising?

• Streaming speed is important
• Avatar choices for account profiles are important
• Number of selections in each genre is very important
• Price is very important

Q3. You work for a potato chip company and determine that customers are concerned about the high salt content in your product. What type of analytics should you conduct to figure out how to assure customers that the salt content is at an acceptable level?

• Descriptive
• Marketing
• Prescriptive
• Predictive

Q4. The sneaker company you work for is set to release a limited edition shoe in the fall. What type of analytics will you conduct to forecast sales for these shoes based on three different marketing campaign options?

• Descriptive
• Prescriptive
• Predictive
• Marketing

Q5. The restaurant you work for has been reviewed many times by customers on Yelp.com. What kind of analytics should you apply to these reviews to figure out which types of dishes are most recommended?

• Descriptive
• Prescriptive
• Marketing
• Predictive

Q6. How can data analytics help you make better marketing decisions?

• Analyzing data can help you take the optimal next steps to increase sales and improve revenue.
• Analyzing data yields fail-safe predictions about what will happen as a result of marketing decisions.
• Bad data can help you determine what NOT to do.
• Data analytics eliminates the need for traditional methods of customer analysis.

Quiz 3: The Marketing Process

Q1. You work for a company that rents musical instruments to K-12 school districts and your objective is to increase the length of instrument rental contracts. How will segmenting your market help you achieve your objective?

• It helps you decide which customers to target.
• It will help you determine which instruments are rented the longest.
• It will help you determine who the competitors are in the market.
• It will help you determine how much money to spend on a new marketing campaign.

Q2. Your company sells over-the-counter sleep pills and has created the slogan “Sleep better than a baby, sleep like a teenager.” What element of strategy does this represent?

• Context
• Positioning
• Targeting
• Segmentation

Q3. Your company sells a lot of recycled copy paper to companies, but not school districts. What step in the marketing process are you going to focus on to bring in business from schools?

• Tactics
• Financials
• Objectives
• Strategy

Q4. You work for a company that manages local bands. One of your bands is repeatedly turned down for record deals with big name labels. On the band’s website, you see hundreds of comments from fans. What should you do to help your band get a record deal?

• Attend a live performance and ask audience members their thoughts on the band
• Rely on your intuition about what the band needs to do
• Use text analytics to look for trends
• Review the financials

Q5. You work for a snow shovel company and find reviews of your product online from customers in Siberia and Alaska. After analyzing the data, you discover some unexpected results. Which of the following shovel attributes is surprising that customers in these areas are concerned about?

• Color
• Sharpness of shovel blade
• Price
• Non-stick capabilities

Q6. The clothing chain you work for attaches survey links to the bottom of receipts so customers can go online to rate their experience and earn a 15% off coupon for their next purchase. What type of analytics should you perform to gain insights from this survey data?

• Prescriptive
• Marketing
• Descriptive
• Predictive

Q7. Your company sells sports energy drinks and has created a campaign with the slogan “Ski all day and party all night.” What element of strategy does this represent?

• Segmentation
• Targeting
• Positioning
• Context

Q8. The deodorant company you work for purchases QR data about supermarket purchases. You’re trying to find out more about the connection between purchases of your product and other purchases a customer makes. What type of analytics should you perform to understand more about any possible connections between one purchase decision and another?

• Marketing
• Descriptive
• Predictive
• Prescriptive

Q9. You work for a cookware company that sells crockpots that are programmable by smartphones. You’re reviewing a new ad campaign to promote this product. What type of analytics will you conduct to forecast the impact of this campaign?

• Prescriptive
• Predictive
• Marketing
• Descriptive

Q10. What is the goal of the marketing planning process?

• To determine how much money your company should spend on an ad campaign.
• To learn more about your customer base and various subgroups that comprise it.
• To create an effective marketing plan to achieve an objective
• To predict the outcome of a marketing campaign.

Week 2: Marketing Analytics

Quiz 1: Brand and Brand Architecture

Q1. What is the main lesson marketers can learn about the power of brands from the merger of Snapple and Gatorade?

• Marketing spending always pays off.
• Competing brands cannot successfully be merged.
• A brand with many varieties cannot successfully merge with a brand with few varieties.
• Brands require careful attention to maintain their value.

Q2. Which type of consumer is likely to be attracted to a “ruggedness” brand?

• Someone who enjoys hiking, camping and other outdoor activities.
• Someone who loves ziplining and horror movies.
• Someone who enjoys expensive clothing and high-end merchandise.
• Someone who values free and open communication.

Q3. Which of the following is a product benefit for winter boots?

• Lightweight
• Sheepskin
• Soft
• Warm

Q4. Why do marketers need to know the emotional and product benefits of a brand?

• So they can pick features that customers want
• So they can tweak features
• So they can understand the value of the brand
• So they can set a price for their product

Quiz 2: Calculating Brand Value

Q1. If your brand is in the lower right quadrant of the Brand Asset Valuator matrix, what should be your strategic priority?

• Enhancing your brand stature
• Building up knowledge of your brand
• Building up esteem for your brand
• Making your brand more relevant

Q2. According to the Y&R Brand Asset Valuator, what is the key similarity between an aspiring brand and a power brand?

• Both are well-known
• Both are held in high esteem
• Both are highly differentiated
• Both are highly relevant

Q3. Your company is considering purchasing a new brand. Which brand valuation model should you weigh most in your decision?

• Revenue Premium Model
• Y & R Brand Asset Valuator Model
• All of the above
• Interbrand Brand Valuation Model

Q4. For which of the following products would you most likely use Revenue Premium to estimate brand equity?

• Running shoes
• Coffee tables
• Yogurt
• Guitars

Q5. This is a three question series to walk you through the steps to calculate brand equity for Redberry Cookies.
Complete step 1: Calculate the annual revenue premium per household.

Brand	Market Share	Price per Pound	Average Consumption
Private label	12%	$0.80	7
Redberry Cookies	35%	$1.50	7

• -$0.15
• $0.43
• $4.35
• $3.00

Q6. This is a three-question series to walk you through the steps to calculate brand equity for Redberry Cookies.
Complete step 2. Calculate additional variable costs, assuming the private label earns a 25% margin.

Brand	Market Share	Price per Pound	Average Consumption
Private label	12%	$0.80	7
Redberry Cookies	35%	$1.50	7

• $1.97
• $0.14
• $0.32
• $0.97

Q7. This is a three-question series to walk you through the steps to calculate brand equity for Redberry Cookies.
Complete step 3. Calculate the brand equity of Redberry Cookies on an annual basis, assuming the total number of households is 125 million.

Brand	Market Share	Price per Pound	Average Consumption
Private label	12%	$0.80	7
Redberry Cookies	35%	$1.50	7

• $17.25M
• $375M
• $335M
• $253.75M

Q8. What does it mean to calculate revenue premium as a measure of brand equity?

• The market share of a branded product versus a private label product
• The prestige of a brand compared to a private label
• The extra revenue generated by a branded product
• The value of a brand

Quiz 3: Measuring Brand Assets

Q1. Your company sells custom-made surfboards prized by champions. You’re considering acquiring a well-known custom skateboard company. What should you carefully consider when merging your two companies to preserve the power of each brand?

• The profitability of the skateboard company
• The personality traits of each brand
• Whether the two products are packaged the same
• The price of the surfboard versus the price of the skateboards

Q2. What is the relationship between brand personality and brand equity?

• A carefully constructed brand personality increases the value of the brand.
• Brand equity increases the relevance of the brand’s personality.
• The longer a brand is on the market, the bigger the impact of the brand’s value on its personality.
• They mean the same thing.

Q3. Which of the following is a product benefit for a Honda Civic car?

• Comfortable
• Leather seats
• Black
• Dual airbags

Q4. Why do marketers focus so much time on developing a brand’s architecture?

• To develop a product
• To determine brand value
• To build customer trust in the brand
• To determine the price of branded products

Q5. If your new brand is in the middle of the left side of the Brand Asset Valuator matrix, what should be your strategic priority?

• Differentiating your products
• Making your brand more relevant to consumers
• IncYour brand has already established differentiated and relevant products, but not many consumers may know about the brand or hold it in great esteem.
• Increasing brand stature

Q6. According to the Y&R Brand Asset Valuator, what is the difference between an aspiring brand and an eroding brand?

• Aspiring brands are less relevant and held in less esteem than eroding brands.
• Aspiring brands are more differentiated and more well known than eroding brands.
• Aspiring brands are more differentiated, but are less well known than eroding brands.
• Aspiring brands are more relevant and held in greater esteem than eroding brands.

Q7. Your company is considering acquiring a company with several different branded products in different categories, from cereal to tires. Which model should you consider in your decision?

• Revenue Brand Premium Model
• All three models should be used.
• Interbrand Brand Value Model
• Y & R Model

Q8. What does the revenue premium as measure of brand equity quantify?

• The difference in market response between a branded product and an equivalent unbranded product
• The difference in manufacturing costs between a branded product and an equivalent unbranded product
• The additional marketing spending to be allocated to a branded product over an equivalent unbranded product
• The expected additional demand generated by a branded product over an equivalent unbranded product

Q9.

Brand	Market Share	Price per Pound	Average Consumption
Private Label	10%	$0.30	5
Morning Magic Cereal	30%	$0.80	5

What is the brand equity of Morning Magic Cereal on an annual basis, assuming a 25% margin and 125 million population? (Do not round at the Additional Variable Cost step.)

• $121.88M
• $131.25M
• $103.13M
• $125.63M

Q10. When calculating brand equity, what does the long-term multiplier represent?

• A way to account for long-term competition for the brand
• A way to express the cumulative value of equity in the future at its present day value
• A way to determine the risk of a brand in the future
• A way to calculate the value of the brand’s customer relationship

Week 3: Marketing Analytics

Quiz 1: CLV

Q1. If the retention rate for a customer cohort decreases and that customer generates a positive margin, what will happen to the total net profit for future periods?

• It will decrease.
• It cannot be determined.
• It will increase.
• It will remain the same.

Q2. Fabulous Fitness Gym is trying to figure out how much each of their customers is worth. What is the CLV for an average club membership?
Monthly membership dues: $160 per person

Variable costs for the membership and retention: $30 per member

Length of the average active membership: 30 months

• $130
• $5,700
• $4,800
• $3,900

Q3. Natural Market, a local farm, provides customers who sign up, a weekly bag of fruits and vegetables.What is the short-term margin for the CLV formula?
Weekly margin: $25 per customer

Weekly spending on customer retention: $5 per customer

• Because we don’t know the discount rate, we can’t calculate the short-term margin.
• Because we don’t know the retention rate, we can’t calculate the short-term margin.
• $20
• $25

Q4. Ink on Demand provides subscription printer cartridge refills. What is the long-term multiplier?
Billing: At the beginning of the month

Average monthly net margin: $20

Retention rate (r): 93%

Monthly discount rate (d): 3%

Hint: Use the formula for calculating CLV for customers who pay before they use the service.

• $20
• 10.3
• 9.3
• $186

Q5. Consider this subscription service. What is the CLV for an average customer?
Billing: End of the month

Monthly margin: $100 per customer

Annual retention spending: $780 per customer

Monthly retention (r): 97%

Discount rate (d): 3%

• $565.95
• $16.17
• $600.83
• $17.17

Q6. Consider this subscription to a video gaming site. What is the CLV for an average customer?
Billing: Beginning of the month

Monthly margin (M): $150 per customer

Annual retention spending (R): $360 per customer

Monthly retention (r): 96%

Discount rate (d): 2%

• $2,040
• $3,121
• $2,550
• $1,920

Q7. JoJo’s Coffee acquires 100 customers in July. What is the present value of total net profit in August?
Monthly margin (M): $40 per customer

Monthly retention spending (R): $10 per customer

Monthly retention rate (r): 95%

• $4,000
• $2,850
• $4,700
• $3,000

Q8. In December, Shirley Snow Plow Services had 50 customers. What is the present value of total net profit in February?
Monthly margin (M): $75 per customer

Monthly retention spending (R): $0

Monthly retention rate (r): 95%

• $3,384.38
• $3,750.00
• $3,215.16
• $3,562.50

Q9. Virginia Golf Club owns and operates a chain of golf courses. In April, 75 people signed up for a membership. What is the present value of total net profit from April to June for this cohort of golfers?
Monthly margin (M): $110 per customer

Monthly retention spending (R): $20

Monthly retention rate (r): 80%

• $16,470
• $5,400
• $4,320
• $20,250

Q10. You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV?
M = $50

d = .01

If R = $49, then r = 99%

If R = $40, then r = 90%

If R = $30, then r = 75%

If R = $20, then r = 60%

If R = $10, then r = 50%

Tip: You can calculate each combination individually to arrive at an answer, but to really hone your understanding of CLV and how the various components interact, I encourage you to set up a spreadsheet (Google, Excel) with the appropriate formulas and play around with the numbers, assuming a spend from 0 to $50 and different retention rates. As a bonus, you can use the spreadsheet on your final quiz!

• $30
• $10
• $49
• $40

Quiz 2: CLV

Q1. If the retention rate for a customer cohort increases and that customer generates a positive margin, what will happen to the total net profit for future periods?

• It will decrease.
• That cannot be determined.
• It will increase.
• It will remain the same.

Q2. Palmetto Digital sells a web-based marketing design subscription service and needs to know how much each of their customers is worth. What is the CLV for an average client subscription?
Monthly subscription cost: $25

Average retention marketing costs per customer: $10 per month

Average length of customer relationship: 40 months

• $1,000
• $600
• $400
• $1,400

Q3. Danny’s Dairy Farm provides a weekly home delivery service. What is the short-term margin for the CLV formula?
Weekly margin: $15

ANNUAL spending on customer retention: $260 per customer

• $15
• Without the retention rate, it is impossible to calculate the short-term margin.
• -$245
• $10

Q4. EF Cosmetics offers a monthly “”Latest and Greatest”” cosmetics subscription. What is the long-term multiplier?
Billing: At the beginning of the month

Average monthly net margin: $100 per month

Retention rate (r): 98%

Discount rate (d): 1%

• $3,267.00
• $100
• 32.67
• 33.70

Q5. Consider a weekly cleaning service. What is the CLV for an average customer?
Billing: End of the week

Weekly margin: $80

Annual retention spending: $1040

Weekly retention (r): 96%

Discount rate (d): 2%

• $16
• $960
• $17
• $1,020

Q6. Consider this streaming music subscription service. What is the CLV for an average customer?
Billing: Beginning of the month

Monthly margin (M): $2 per customer

Annual retention spending (R): $12 per customer

Monthly retention (r): 50%

Discount rate (d): 2%

• $0.52
• $1.96
• $0.96
• -$19.60

Q7. In May, Gorgeous Gowns acquired 500 customers. What is the present value of total net profit in September?
Monthly margin (M): $125 per customer

Monthly retention spending (R): $25

Monthly retention rate (r): 50%

• $6,250
• $25,000
• $12,500
• $3,125

Q8. In April, Wow Water! services had 300 customers. What is the present value of total net profit in July?
Monthly margin (M): $40 per customer

Monthly retention spending (R): $10

Monthly retention rate (r): 75%

• $5,062.50
• $9,000.00
• $3,796.88
• $6,750.00

Q9. In July, 400 people sign up for a monthly music streaming service. What is the present value of total net profit from July to October for this cohort of music lovers?
Monthly margin (M): $15 per customer

Monthly retention spending (R): $7

Monthly retention rate (r): 95%

• $11,871.60
• $2,606.42
• $3,200.00
• $12,800.00

Q10. You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV?
M = $50

d = .05

If R = $5, then r = 44%

If R = $4, then r = 43%

If R = $3, then r = 42%

If R = $2, then r = 41%

If R = $1, then r = 40%

Tip: You can calculate each combination individually to arrive at an answer, but to really hone your understanding of CLV and how the various components interact, I encourage you to set up a spreadsheet with the appropriate formulas and play around with the numbers, assuming a spend from 0 to $50 and different retention rates.

• $3.00
• $1.00
• $2.00
• $5.00

Week 4: Marketing Analytics

Quiz 1: Designing Experiments

Q1. Why is it challenging to evaluate marketing options?

• Marketing usually occurs in isolation
• There are so many factors that influence outcomes that are impossible to anticipate.
• Test market results are unreliable.
• It’s hard to confuse correlation and causation.

Q2. Which of the following factors is required to establish causality?

• Change marketing mix –> change time sequence
• Change marketing –> change sales
• Change sales –> increased marketing
• Change sales –> change marketing

Q3. f you’re implementing a before-after experiment, which of the following would you do first?

• Show the test group the new advertising and the control group the old advertising.
• Calculate sales lift, adjusting for any differences between the test and control group.
• Select 1000 customers with similar characteristics or in similar geographic areas.
• Calculate sales in both the test and control group given existing advertising.

Quiz 2: Calculating Break Even and Lift

Q1. In an advertising experiment using before-after design, 1000 customers are randomly assigned to 3 groups. All groups are exposed to the existing advertisement for round 1 of the experiment. In round 2 of the experiment, groups 2 and 3 see the new ad while group 1 (the control) is still shown the old ad.

Control Group 1	Test Group 2	Test Group 3
Round 1 sales–old ad	295	310	300
Round 2 sales–Group 1, old ad, Groups 2 and 3, new ad	310	450	325

• 15
• 25
• 10
• 5

Q2. What is the manufacturer contribution margin ($)?
Retail price

Retail price	$100
Retail margin	30%
Manufacturer contribution margin	42%

• $12.60
• $30.00
• $70.00
• $29.40

Q3. A “Mom & Pop” startup wants to increase brand awareness of their delicious hot sauce. How many bottle of hot sauce do they need to sell to break even on the ad campaign?

Ad budget	$25,000
Retail price	$4.50/bottle
Retail margin	45%
Manufacturer contribution margin	30%

• 5,556
• 14,430
• 41,152
• 33,670

Q4. Calculate net lift given the following information:

• 19.2%
• 123.8%
• 20.4%
• 103.4%

Quiz 3: Marketing Experiments

Q1. Why is it challenging to evaluate marketing options?

• It is hard to measure return on investment.
• Marketing decisions are usually made in isolation
• Marketing managers often have different opinions about the impact of alternative marketing options.
• Chief marketing officers and chief financial officers don’t see things the same way.

Q2. Which of the following factors is required to establish causality?

• There is no other factor that could be the cause of the increase in sales.
• An increase in advertising
• An increase in brand awareness
• A decrease in price

Q3. If you’re implementing a before-after experiment, which of the following would you do first?

• Show the test group the new advertising and the control group the old advertising.
• Calculate sales lift, adjusting for any differences between the test and control group.
• Calculate sales in both the test and control group given existing advertising.
• Expose both the test and control group to the old advertising.

Q4. In an advertising experiment using before-after design, 3000 customers are randomly assigned to 3 groups. All continued to be exposed to the existing advertisement in round 1. In round 2, a new advertisement is shown to groups 2 and 3.
Control Group 1

Test Group 2

Group 3

Round 1–old ad	650	695	680
Round 2–Group 1, old ad, Groups 2 and 3, new ad	630	660	740

What is the sales lift (in units) for the ad shown to group 3?

• 80
• 110
• -60
• 60

Q5. What is the manufacturer contribution margin ($)?
Retail price

Retail price	$200
Retail margin	45%
Manufacturer contribution margin	30%

• $90.00
• $110.00
• $27.00
• $33.00

Q6. A manufacturer is considering increasing advertising spending by $4.5 million.

Retail price	$50
Retail margin	40%
Manufacturer contribution margin	60%

What is the break even number of units the manufacturer must sell to cover the increase in advertising?

• 1,080,000
• 250,000
• 210,000
• 150,000

Q7. Calculate net lift given the following information:

• 13.90%
• 109.50%
• 228.20%
• 188.70%

Q8. Given the data below, calculate break even units.

• 7,215
• 1.39
• 10,000
• 3.3

Q9. Snacker Crackers is studying the impact of an advertising campaign for their multigrain product line. Without the ad campaign, their sales in October were 80,000 boxes. With the ad campaign, sales fell to 70,000 boxes in November. Historically, October represents 15% of their annual sales and November represents 5%.
What is the lift for their advertising campaign?

• 263%
• -13%
• 163%
• 88%

Q10. Project unit sales based on the following data from a product launch test in April in the southeast sales region.

Test market units sold	500
Test % of the population	10%
Retailer share of product sales in the SE	20%
Test % of annual sales	5%
Retailer share of market nationally	60%

• 300,000
• 15,000
• 500,000
• 100,000

Week 5: Marketing Analytics

Quiz 1: Regressions

Q1. How are regressions used by marketers?

• To estimate the potential budget options of various marketing ideas
• To develop a brand architecture
• To understand the relationship among many different variables.
• To estimate the value of a product

Q2. As a marketing manager, what should you look at in the regression output to determine the significance of the relationship among variables?

• Coefficients
• R-squared
• T-statistic
• P-value

Q3. You decide to run a multiple regression to estimate the price of houses in your area. You include variables like number of bedrooms and bathrooms, lot size, and age of the house. However, you forgot to include a very important variable – the size of the house in square feet. Why is your regression likely to give you unreliable results?

• Your results are economically significant but not statistically significant.
• You need to use a different model with just 2 variables
• Your regression is biased.
• You are considering variables that are statistically insignificant.

Q4. A health care company is analyzing blood pressure data and its relationship to patient age and weight. Based on the graph, what is the relationship between age and blood pressure?

• The relationship is negative, since blood pressure decreases as age increases.
• Cannot be determined
• There is no relationship. With no discernible effect on blood pressure as age changes, the company will need to consider other variables to estimate blood pressure.
• The relationship is positive, since blood pressure increases as age increases.

Q5. A health care company is analyzing blood pressure data and its relationship to patient age. What should the company expect the sign for the coefficient of age to be when they run a regression with blood pressure as the dependent variable and age as the independent variable?

• Cannot tell the sign of a regression coefficient from the plot.
• Negative – Blood pressure decreases as age increases
• Positive – Blood pressure increases as age increases

Q6. Based on the output from a regression of age and corresponding blood pressure, which measure provides an estimate of the strength of the relationship between blood pressure and age?
Regression Statistics

R Squared	0.96
Adjusted R Squared	0.95
Observations	11
	Coefficients	Standard Error	tStat	P-value
Intercept	58.71	6.45	9.10	<.01*
Age	1.46	0.10	14.30	<.01**
			*	7.81E-06
			*	1.171E-07

• R-squared
• T-statistic
• P-value
• Coefficients

Q7. A health care company is analyzing blood pressure data and its relationship to patient age. Based on the output from a regression of age and their corresponding blood pressure, how much does blood pressure increase for each unit increase in age?
Regression Statistics

R Squared	0.96
Adjusted R Squared	0.95
Observations	11
	Coefficients	Standard Error	tStat	P-value
Intercept	58.71	6.45	9.10	<.01*
Age	1.46	0.10	14.30	<.01**
			*	7.81E-06
			*	1.171E-07

• 58.71
• 0.96
• 0.95
• 1.46

Q8. Based on the output from a regression of age and their corresponding blood pressure, how would you interpret the p-value of less than .01 for the coefficient of age?
Regression Statistics

R Squared	0.96
Adjusted R Squared	0.95
Observations	11
	Coefficients	Standard Error	tStat	P-value
Intercept	58.71	6.45	9.10	<.01*
Age	1.46	0.10	14.30	<.01**
			*	7.81E-06
			*	1.171E-07

• There is less than 1% chance that a relationship (positive or negative) between age and blood pressure WILL be observed in another sample.
• There is less than 1% chance that a relationship (positive or negative) between age and blood pressure WILL NOT be observed in another sample.
• There is a 99% chance that a positive relationship between age and blood pressure will be observed in another sample.
• There is less than 1% chance that a positive relationship between age and blood pressure WILL be observed in another sample.

Q9. Based on the output from a regression of age and the corresponding blood pressure, what is the predicted value of blood pressure when age is zero?
Regression Statistics

R Squared	0.96
Adjusted R Squared	0.95
Observations	11
	Coefficients	Standard Error	tStat	P-value
Intercept	58.71	6.45	9.10	<.01*
Age	1.46	0.10	14.30	<.01**
			*	7.81E-06
			*	1.171E-07

• 6.45
• 11
• 0
• 58.71

Q10. Based on the output from a regression of age and weight and their corresponding blood pressure, which factor predicts difference in blood pressure?
Regression Statistics

R Squared	0.977
Adjusted R Squared	0.971
Observations	11
	Coefficients	Standard Error	tStat	P-value
Intercept	30.99	11.94	2.59	0.03
Age	0.86	0.25	3.47	0.01
Weight	0.33	0.13	2.56	0.03

• Age
• Weight
• Both age and weight
• Neither age nor weight

Q11. Based on the output from a regression of age and weight and their corresponding blood pressure, how much will blood pressure change if a person’s weight increases by 1 pound?
Regression Statistics

R Squared	0.977
Adjusted R Squared	0.971
Observations	11
	Coefficients	Standard Error	tStat	P-value
Intercept	30.99	11.94	2.59	0.03
Age	0.86	0.25	3.47	0.01
Weight	0.33	0.13	2.56	0.03

• The heavier person’s blood pressure would be .33 points lower.
• The heavier person’s blood pressure would be .86 points higher.
• The heavier person’s blood pressure would be .86 points lower.
• The heavier person’s blood pressure would be .33 points higher.

Quiz 3: Regression Analysis

Q1. What does a regression analysis reveal to a marketer?

• The development of a brand architecture
• The potential budget options of various marketing ideas
• The value of a product
• The relationship between a number of variables

Q2. Zodiac wants to sponsor an up-and-coming golf player to endorse its watches. Using regression analysis to predict player earnings as a measure of success, they think player height and earnings might be related. Based on the graph above, what is the relationship between height and earnings–and what should Zodiac look for in a player to sponsor?

• Cannot be determined

• There is no relationship. With no discernible effect on earnings as height changes, Zodiac will need to consider other variables when selecting a player to sponsor.
• The relationship is positive, since earnings increase as height increases. Zodiac should look for a tall player to sponsor.
• The relationship is negative, since earnings decrease as height increases. Zodiac should look for a short player to sponsor.

Q3. Zodiac wants to sponsor an up-and-coming golf player to endorse its watches and is interpreting the data about height and earnings in the chart above. What should Zodiac expect the sign for the coefficient of height to be when they run a regression with earnings as the dependent variable and height as the independent variable?

• Negative – Earnings decrease as height increases
• Positive – Earnings increase as height increases
• Cannot tell the sign of a regression coefficient from the plot.

Q4. Based on the output from a regression of golf player heights and their corresponding earnings (above), what measure provides an estimate of the strength of the relationship between height and earnings?

• Coefficients
• T-statistic
• P-value
• R-squared

Q5. Based on the output from a regression of golf player heights and their corresponding earnings (above), how much do earnings increase for each unit increase in height?

• 0.16
• -12.87
• 0.23
• 0.14

Q6. Based on the output from a regression of golf player heights and their corresponding earnings (above), how would you interpret the p-value of .01 for the coefficient of height?

• There is a 99% chance that a positive relationship between height and earnings WILL NOT be observed in another sample.
• There is 1% chance that a positive relationship between height and earnings WILL be observed in another sample.
• There is 1% chance that a relationship (positive or negative) between height and earnings WILL be observed in another sample.
• There is 99% chance that a positive relationship between height and earnings WILL be observed in another sample.

Q7. Based on the output from a regression of basketball player age and corresponding salary (above), what is the predicted value of salaries when age is zero?

• 0
• 1.91
• 3.87
• 38

Q8. Based on the output from a regression of golf player heights and gender and their corresponding earnings (above), which factor predicts differences in earnings among golf players?
Note: 6.52e-09 = 0.000000652

• Height
• Intercept
• Gender
• Both height and gender

Q9. Based on the output from a regression of basketball player age, points scored per game, and corresponding salary (above), how do salaries change with improvements in points scored per game?

• Salaries decrease by $0.27M for every point improvement in points scored per game.
• Salaries do not change with points scored per game.
• Salaries increase by $0.27M for every point improvement in points scored per game.
• Salaries increase by $0.55M for every point improvement in points scored per game.

Q10. Based on the chart (above), what decision should a sports management agency take and what factors should they look for when pursuing new talent?

• The regression analyses do not provide useful recommendations about how to select potential new talent.
• Consider pursuing older basketball players who are scoring high points per game.
• Consider pursuing basketball players who score high points per game.
• Consider pursuing older basketball players.