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Flashcards in 3.2e Extrapolation Deck (11):
1

Three statistical techniques used in interpretation of marketing data

1. Extrapolation
2. Correlation
3. Confidence intervals

2

What do confidence intervals assess?

Reliability of sampled data

3

What is used to show the accuracy in confidence intervals?

A plus or minus figure

4

In what form is market research quoted?

In a range
E.g. Jersey pottery - people will buy a product 36% - BUT it may not accurately reflect the whole population, so a result may have a confidence interval of + or - 4. Conclusion - between 32% and 40% of the population will buy the product.

5

Factors that influence confidence intervals

- Sample size
- Population size
- Percentage of sample choosing a particular answer

6

Trend definition

An pattern of change within a set of numerical data

7

What does trend analysis examine?

The pattern of historic data and assumes this pattern will continue in the future

8

Extrapolation definition

Using previous patterns of numerical data in order to predict values in the future

9

Advantages of extrapolation

- Simple method
- Not much data required
- Quick and cheap

10

Disadvantages of extrapolation

- Unreliable
- Assumes past trend will continue into future
- Ignores qualitative factors (change in fashion etc)

11

How is quarterly moving average calculated?

By adding the latest four quarters of sales and then dividing by four

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