Question

Data Description:

Response ID:             A unique identifier for each respondent in the survey

Liking:                       Respondent’s overall liking of their XYZ car

(1 = least liked, 5 = most liked)

Rating:                       Respondent’s rating of their XYZ car’s fuel efficiency

(1 = poor, 5 = excellent)

Importance:               Importance of fuel efficiency when purchasing an automobile

(1 = extremely unimportant, 5 = extremely important)

1.4 Suppose instead that the questionnaire captured fuel efficiency ratings through the following item:

How would you rate your XYZ car in terms of fuel efficiency?

• Excellent
• Above Average
• Average
• Below Average
• Poor

Create a regression model that examines the relationship between fuel efficiency rating (independent variable) and overall liking (dependent variable). Define your regression terms where appropriate. (15 points)

Answer 1

Market research can be categorized into two major categories namely primary and secondary research.

Primary research is the one which provides direct feedback/opinion of the population that needs to be analyzed. It is the research which undergoes first-hand data. This is because the reliability and validity of primary data is more which makes the conclusions more accurate. However, the reliability and validity are subject to the research ethics being followed properly.

The examples of primary data collection methods are:

Survey

Personal interview

Observations

Secondary research is the one which is not based on primary data. It is the data that is taken from various sources such as company’s website, newspapers, and other sources. The reliability of this data is subjected to the accuracy of the source from where it is taken.

Some examples of secondary sources are:

Already existing research works

Magazines

Newspapers