3.2e - Extrapolation

Question 1

What statistical techniques are used in the interpretation of marketing data?

Answer 1

• Confidence intervals
• Correlation
• Extrapolation

Question 2

Confidence intervals definition

Answer 2

A statistical technique used to assess the reliability of sampled data

Question 3

Factors that will influence a confidence interval:

Answer 3

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

Question 4

Trend definition

Answer 4

A pattern of change indicated within a set of numerical data

Question 5

Extrapolation definition

Answer 5

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

Question 6

Advantages of using extrapolation:

Answer 6

• Simple method
• Not much data required
• Quick
• Cheap
• Used to set targets

Question 7

Disadvantages of using extrapolation:

Answer 7

• Unreliable if historical data has significant fluctuations
• Assumes past trend will continue into the future
• Ignores qualitative factors