1.Cluster analysis includes all BUT which of the following steps?

a)Group of answer choices

b)Applying the clustering procedure to the distance measures

c)Computing the distance between objects under study along the selected variables

d)Selecting the variables to use as a basis for clustering

e)Adjusting for omitted variable bias

f)Deciding on the number of clusters

2.Among the common applications of conjoint analysis are all BUT which of the following?

a)Group of answer choices

b)Determining service offering attribute importance

c)Predicting the market share of a proposed new product

d)Measuring customer lifetime value

e)Determining consumer willingness to pay for a proposed new product

f)Predicting the impact of a new competitive product

3.All BUT which of the following are important to know when constructing an experimental design for conjoint analysis?

Group of answer choices

a)The more understandable the level of each attribute, the more valid the results

b)The more tangible the level of each attribute, the more valid the results

c)The greater the isolation of evaluation (i.e., closer to one attribute of evaluation at a time), the more valid the results

d)The greater the number of attribute levels to be tested, the more data must be collected to achieve the same degree of output accuracy

e)The greater the distance between any two consecutive levels of attributes (e.g., features, price/performance points), the greater the uncertainty in evaluating the value in between these consecutive attribute levels

4.Clustering criteria frequently used for evaluating the effectiveness of a segmentation scheme include all BUT:

Group of answer choices

a)Identifiability

b)Affordability

c)Sustainability

d)Accessibility

e)Actionability

5.Which of the following best represents a definition of cluster analysis:

Group of answer choices

a)A statistical method for analyzing a dataset in which there are one or more independent variables that determine an outcome

b)A survey-based statistical technique used in market research that helps determine how people value different attributes (feature, function, benefits) that make up an individual product or service

c)The task of grouping a set of objects in such a way that objects in the same group are more similar to each other than to those in other groups

d)A process in which the values of observed data are expressed as functions of a number of possible causes in order to find which are the most important

e)Technique used for predicting the unknown value of a variable from the known value of two or more variables - also called the predictors

6.Which of the following is NOT true about cluster analysis:

Group of answer choices

a)A common method for ensuring the stability of results obtained from K-means clustering is to split the data randomly into two halves and run the analysis separately on each half

b)Results of the cluster analysis are used to distinguish independent variables from the dependent variable

c)The objective of the cluster analysis is to minimize the "within cluster variance" and maximize the "between cluster variance"

d)Distance between two observed data points is obtained through a measure called Euclidean distance

e)The main input into any cluster analysis procedure is a measure of distance between observed data points that are being clustered

7.Which of the following IS TRUE about cluster analysis:

Group of answer choices

a)A cluster, defined in this context, is a group of relatively heterogeneous data points (e.g., customers)

b)As the number of clusters increases, the ratio of the "within cluster variance" to the "between cluster variance" will keep increasing

c)An advantage of K-means clustering is that it estimates for you the number of clusters that exist in the observed data

d)The identifiability criteria is satisfied if the clusters represent the most profitable market segments available to a firm

e)Despite the rigor and precision applied in the analysis, the number of clusters and variables used in distinguishing similar groups requires some managerial intuition and subjective judgment

8.Which of the following IS TRUE about the results of a conjoint analysis?

Group of answer choices

a)Results include the between cluster variance

b)Results include the estimated attribute-level utilities

c)Results include dummy variables for predicting customer retention

d)Results include R squared metrics for measuring the dependent variable's explained variance

e)Results are generally used to determine the optimal number of customer segments to target

9.Which of the following is NOT true about the results of a conjoint analysis?

Group of answer choices

a)When applied to attribute trade-off analysis, utilities are often used to analyze what average consumers would be willing to give up on one particular attribute to gain improvements in another

b)A key premise for using conjoint analysis is that consumers cannot easily isolate the value of any particular feature. Conjoint analysis permits an analysis of features considered jointly.

c)Results are generally interpreted as the percent decision weight of an attribute in the overall choice process

d)Results include the discounted rate of returns in perpetuity

e)When applied to a market share predictions, results often rely on a multinomial logit model

10. A commonly used method to determine the number of clusters is a(n):

Group of answer choices

a)Independent sample T-test

b)One-way ANOVA

c)Elbow criterion

d)Canonical correlation

e)Spectral analysis

11. To calculate the importance of any given attribute examined in a conjoint analysis, you must:

Group of answer choices

a)Take the square root of the sum of difference between the highest and lowest utility level for all attributes and divide by the difference between the highest and lowest utility level of that attribute

b)Take the difference between the highest utility level of that attribute and lowest utility level of that attribute

c)Take the mean value of utility for the attribute and divide by the difference between the highest and lowest utility level of that attribute

d)Take the difference between the highest and lowest utility level of that attribute and divide this by the sum of the difference between the highest and lowest utility level for all attributes

e)Take the mean value of utility for the attribute and divide by the mean value of all attributes

12. Conjoint analysis is best suited for products that have:

Group of answer choices

a)Short life cycles

b)Global appeal

c)High price elasticity

d)Very tangible attributes

e)Accurate sales histories

13. An example of non-hierarchical clustering algorithms is:

Group of answer choices

a)Loglinear modelling

b)Partial least squares

c)Confirmatory factor analysis

d)K-means clustering

e)Agglomerative hierarchical clustering

14. A conjoint analysis begins with:

Group of answer choices

a)An experimental design

b)A plot of advertising and price elasticity

c)A tally of all independent variables impacting sales

d)Future industry projections

e)A discount rate for present value calculations