Quantitative Analysis & Decision Making
Parameter Estimation, Inferences, and Tests of Difference
You are a marketing analyst in a large grocery store chain. Your job entails developing a robust customer knowledge base utilizing the company’s vast database of in-store purchases. To date, you have been able to build a profile of your customer base, draw inferences about different customer groupings, and compare customer behaviors across the different sales regions. Your task is to:
- Describe the business benefits of parameter estimation. Provide examples of the type of parameters that might be of interest to decision makers in areas such as marketing.
- Elaborate on how being able to estimate those parameters would benefit the quality of the resultant decisions.
- Describe the business benefits of drawing inferences—specifically, when it is advantageous to rely on inferences and what is required to ascertain the correctness of inferences.
- Discuss the relationship between tests of difference and hypothesis testing in the context of designing marketing promotions.
Submit your answers in a 2- to 3-page Microsoft Word document.
Name your document SU_MBA5008_W3_A2_LastName_FirstInitial.doc.
Submit your document to this Discussion Area by Week 3, Day 4.
By the end of the week, use this Discussion Area to critique the answers posted by at least two of your peers.
Cite any sources using the APA format on a separate page.
| Assignment 2 Grading Criteria | Maximum Points |
|---|---|
| Described the business benefits of parameter estimation. | 5 |
| Elaborated on how being able to estimate those parameters would benefit the quality of the resultant decisions. | 5 |
| Described the business benefits of drawing inferences—specifically, when it is advantageous to rely on inferences and what is required to ascertain the correctness of inferences. | 5 |
| Discussed the relationship between tests of difference and hypothesis testing in the context of designing marketing promotions. | 5 |
| Participated in the discussion by asking a question, providing a statement of clarification, providing a point of view with rationale, challenging a point of discussion, or making a relationship between one or more points of the discussion as well as responding to at least two other posts. | 10 |
| Presented a structured document free of spelling and grammatical errors. | 5 |
| Cited all sources using the APA format. | 5 |
| Total: |
