1. What are the scaling assumptions assumed by Pearson product moment correlation?
2. Listed below are various factors that may have relationships that are interesting to marketing managers. With each one, (1) identify the type of relationship, (2) indicate its nature or direction, and (3) specify how knowledge of the relationship could help a marketing manager in designing marketing strategy.
a. Readership of certain sections of the Sunday newspaper and age of the reader for a sporting goods retail store
b. Ownership of a telephone answering machine and household income for a telemarketing service being used by a public television broadcasting station soliciting funds
c. Number of miles driven in company cars and need for service such as oil changes, tune-ups, or filter changes for a quick auto service chain attempting to market fleet discounts to companies
d. Plans to take a five-day vacation to Jamaica and the exchange rate of the Jamaican dollar to that of other countries for Sandals, an all-inclusive resort located in Montego Bay
e. Amount of do-it-yourself home repairs and declining state of the economy (for example, a recession) for Ace Hardware stores.