Understanding Markets and Consumers (AQA A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
What correlation measures
What correlation measures
Strength & direction of relationship between two variables
Positive correlation
Positive correlation
Two variables move in same direction - both increase together
Negative correlation
Negative correlation
Two variables move in opposite directions - one up, one down
Correlation & causation relationship
Correlation & causation relationship
Correlation does NOT prove causation
Confidence interval (margin of error)
Confidence interval (margin of error)
Range within which true population value is likely to fall
Effect of smaller sample sizes
Effect of smaller sample sizes
Produce larger margins of error - less precise results
Most common confidence level in business research
Most common confidence level in business research
95%
Extrapolation definition
Extrapolation definition
Uses historical data to predict future outcomes/trends
Elastic demand (elasticity value)
Elastic demand (elasticity value)
Greater than 1 - demand very responsive to price changes
Inelastic demand (elasticity value)
Inelastic demand (elasticity value)
Less than 1 - demand relatively unresponsive to price changes