Problem-Solution Hypothesis - Module 5

Question 1

It seeks to explain why something has happened, or what might
happen, under certain conditions.

Answer 1

hypothesis or hypothesis statement

Question 2

It used to understand how different variables relate to
each other

Answer 2

hypothesis

Question 3

These are often written as if-then statements

Answer 3

hypothesis statement

Question 4

It is a statistical means of testing an assumption stated in a hypothesis

Answer 4

hypothesis statement

Question 5

These are new organizations created by entrepreneurs to launch new products

Answer 5

Startups

Question 6

TorF: A hypothesis-driven approach to entrepreneurship minimizes, per unit of resources expended, the
amount of information gained for resolving such uncertainty

Answer 6

False

Question 7

TorF: an entrepreneur must decide whether to persevere with her proposed business
mode

Answer 7

True

Question 8

TorF: A hypothesis-driven approach helps reduce the biggest risk facing entrepreneurs: offering a product that no one wants.

Answer 8

True

Question 9

TorF: Many startups fail because their founders waste resources building and marketing
products before they have resolved business model uncertainty

Answer 9

True

Question 10

Enumeration: Steps in Hypothesis Driven Entrepreneurship

Answer 10

Step 1: Develop a Vision
Step 2: Translate the Vision into Hypotheses
Step 3: Specify MVP Tests
Step 4: Prioritize Tests
Step 5: Learn from MVP Tests
Step 6: Persevere, Pivot, or Perish
Step 7: Scaling and Ongoing Optimization

Question 11

This initial step of developing a
vision, also called_________

Answer 11

ideation

Question 12

is an integrated array of distinctive choices specifying a new venture’s
unique customer value proposition and how it will configure activities to deliver that value and earn
sustainable profits.

Answer 12

business model

Question 13

the smallest set of features and/or activities needed to complete what a “Build-Measure-Learn” (3 lean startup principles) cycle and thereby test a business model hypothesis.

Answer 13

Minimum Viable Product (MVP)

Question 14

Who wrote “The Lean Startup”

Answer 14

Eric Ries

Question 15

Who wrote “The Startup Way”

Answer 15

Eric Ries

Question 16

This book is about the lean startup movement.

Answer 16

The Lean Startup

Question 17

This book is about on modern entrepreneurial management

Answer 17

The Startup Way

Question 18

Enumeration: By launching a series of
MVPs, an entrepreneur reduces product development batch sizes and cycle times, yielding two benefits:

Answer 18

1. Short product development cycles accelerate feedback
2. Releasing feature revisions in small batches makes it easier to interpret test results and to diagnose problems

Question 19

customers experience only a subset of the features envisioned for subsequent versions of the product

Answer 19

constrained product functionality

Question 20

a startup relies on temporary and makeshift technology to deliver the MVP’s functionality.

Answer 20

constrained operational capability

Question 21

To ensure sales to early adopters, it can be tempting to specify MVPs that
include sophisticated features that might be deemed irrelevant by mainstream customers—or worse, might confuse mainstream customers and position the new product in their minds as “not for me.”

Answer 21

Constrained Functionality

Question 22

TorF: Operational requirements are nor dictated by product functionality

Answer 22

False

Question 23

TorF: entrepreneurs should
generally employ MVPs with constrained operational capability whenever they are still defining their product’s core functionality

Answer 23

True

Question 24

TorF: entrepreneurs should not constrain operational capability when it
would be costly to acquire such capability and when relying on a temporary, makeshift solution does not unduly impact customers’ ability to provide useful feedback.

Answer 24

False

Question 25

The technology used to deliver the MVP’s functionality is often temporary and makeshift relative to the operational capabilities required for scaling

Answer 25

Constrained Operations

Question 26

TorF: Whether they constrain functionality or operations, MVPs are typically tested with a greatly large customer set, when compared to the pool of prospects that a scaling startup would target.

Answer 26

False

Question 27

TorF: Acquiring a large numbers of customers before validating business model hypotheses can be expensive and can exacerbate damage to a startup’s brand if a subsequent pivot confuses and alienates the early adopters.

Answer 27

True

Question 28

TorF: MVPs should be tested with just enough customers to provide reliable feedback.

Answer 28

True

Question 29

a hypothesis has been confirmed when in reality it is not valid

Answer 29

false positive

Question 30

TorF: false positive results are sometimes observed when entrepreneurs recruit enthusiasts— individuals with an unusual level of passion for the product category—as test subjects

Answer 30

True

Question 31

a hypothesis has been disconfirmed when in reality it is valid

Answer 31

false negative

Question 32

TorF: False negative results regarding demand for a new product are more likely to occur with a badly built MVP or a poorly executed test

Answer 32

True

Question 33

an entrepreneur must prioritize the tests, deciding how to sequence them.

Answer 33

Prioritize Tests

Question 34

TorF: As a general principle, an entrepreneur should give priority to tests that can eliminate considerable risk at a low cost

Answer 34

True

Question 35

TorF: when business model elements are serially independent, then an entrepreneur will have little choice about how to sequence experiments

Answer 35

False

Question 36

entrepreneurs evaluate feedback gained from MVP tests

Answer 36

Learn from MVP Tests

Question 37

TorF: Entrepreneurs also should be on guard against three other potential sources of error

Answer 37

False

Question 38

They stated preferences do not always correspond to their true preferences

Answer 38

Customers

Question 39

Enumeration: Two types of potential error

Answer 39

- Customers - Entrepreneur itself

Question 40

TorF: Extensive psychological research shows that humans are vulnerable to cognitive biases: they see what they want to see, and they see what they expect to see.

Answer 40

True

Question 41

If the MVP validates the business model hypothesis and other feedback does not prompt a shift in direction

Answer 41

Persevere

Question 42

If the MVP test rejects the business model hypothesis or if it validates the hypothesis, but other feedback indicates that greater opportunity lies elsewhere

Answer 42

Pivot

Question 43

If an MVP test decisively rejects a crucial business model hypothesis, and the entrepreneur cannot identify a plausible pivot, then she should shut down her business.

Answer 43

Perish

Question 44

If an entrepreneur has validated all key business model hypotheses

Answer 44

Product-Market Fit

Question 45

This means that the venture has the right product for the market: one with demonstrated demand from early adopters and with solid profit potential

Answer 45

Product-Market Fit

Question 46

It is a graphic organizer that provides the viewer with a high-level view of a project and can turns your ideas into a logical and convincing sequence

Answer 46

storyboard

Question 47

It is a technique that does indeed come from the cinema industry where a linear sequence of illustrations used in animation to develop a broader story

Answer 47

storyboard

Question 48

TorF: Interview used also in business to understand and map’s customers’ experience, enable the growth of the company (using this process) and it also helps to put together your business startup story in a convincing way.

Answer 48

False - Storyboard

Question 49

TorF: Storyboarding has become a best practice and process in the movie industry, is now becoming also an essential process in business

Answer 49

True

Question 50

This have been used in media and film to plan out video shots before investing time and resources into the actual production

Answer 50

Storyboard

Question 51

TorF: The use of storyboards for product development and UX design is much different

Answer 51

False

Question 52

TorF: Storyboards allow product designers to easily and inexpensively test multiple product visions, customer journey maps, and UX product flows until a clear final product design is created and understood by all departments

Answer 52

True

Question 53

It helps the product developer understand the user’s journey as they interact with the product and design the product around the user’s needs

Answer 53

Vision

Question 53

This is a simple statement, story, or example of how you want the product to function and what objective you want it to achieve

Answer 53

Product Vision

Question 54

It allows for a clearer understanding from the start of how the product is intended to be built and minimizes the chances for miscommunications as the development process continues.

Answer 54

storyboard

Question 55

TorF: Creating a few product visions and working across departments is an essential second step to developing a product.

Answer 55

False

Question 56

TorF: storyboarding helps create customer journey maps of your target personas

Answer 56

True

Question 56

TorF: your product users and your product purchasers may not be the same people, and therefore you will have to cater both your product design and marketing efforts differently depending on which audience you’re trying to reach.

Answer 56

True

Question 57

Creating a ___________________ allows developers to experience the product discovery and purchasing process, which in turn can maximize your conversion rate.

Answer 57

customer journey map storyboard

Question 58

Creating a ____________allows product developers to easily walk through a sample UX step-by-step.

Answer 58

storyboard

Question 59

Enumeration: Creating a product vision

Answer 59

* What problem are my target users currently experiencing? * What would help alleviate this problem? * How will my product provide this form of problem alleviation? * What does a “happy user” look like?

Question 60

Enumeration: Creating a customer journey map for key user personas

Answer 60

* Who would be buying my product? How old are they? What is their professional background? What are their motivations (both personal and professional)? * What problem are my buyers currently experiencing? * How would they come across my product as a solution? * What problems would they face when either trying to purchase my product, or implement it in their business? * What would success from our product look like from our buyer’s perspective?

Question 61

Enumeration: Creating a user experience flow

Answer 61

* Where do you want your users to land? * What is the “hook” that will stop them from bouncing on your page? * Do you need different landing pages for different types of users? * How can you capture their contact info so your sales team can follow up on a lead? * Are all the steps necessary? Can you cut any out to streamline the flow and increase conversion rate? * Is there a clear and obvious way for the users to purchase the product?

Question 62

TorF: Make sure to keep your storyboards handy and constantly update them throughout the design process.

Answer 62

True

Question 63

Enumeration: Different Types of Techniques in making a storyboard

Answer 63

- Talk and image - Video clip - Role play - Text and image - Comic Strip

Question 63

tell a story of a protagonist and his environment using one or several images

Answer 63

Talk and image

Question 64

tell a story of a protagonist and his environment using video to blur lines between reality and fiction

Answer 64

Video clip

Question 65

Have people play the roles of a story's protagonist to make the scenario real and tangible

Answer 65

Role play

Question 66

tell a story of a protagonist and his environment using text and one or several images

Answer 66

Text and image

Question 67

Use a series of cartoon images to tell the story of a protagonist in tangible way

Answer 67

Comic Strip

Question 68

Group or conference presentation with low cost

Answer 68

Talk and image

Question 68

Broadcast to large audience or in-house use for decisions with important financial implications and the cost is medium to high

Answer 68

Video clip

Question 69

Workshops where participants present newly developed business model ideas to each other and can cost low

Answer 69

Role play

Question 70

Reports or broadcast to large audiences and can cost low

Answer 70

Text and image

Question 71

Reports or broadcast to large audiences and can cost low to medium

Answer 71

Comic Strip