A chain of stores suspects that coupons will increase sales to customers in its
ID: 3049408 • Letter: A
Question
A chain of stores suspects that coupons will increase sales to customers in its frequent shopper program. To test this theory, the chain mails some customers coupons and does not send these coupons to others. A manager builds a contingency table of two variables: whether the customer was sent a coupon and whether the customer used the coupon in the store. Both variables have Yes/No values. Must the manager find association?
Choose the correct answer below.
A.
No, because not all of the customers will use the coupon.
B.
Yes, except in the case where all of the customers that were sent a coupon make a purchase.
C.
Yes, except in the case where none of the customers that were sent a coupon make a purchase.
D.
No, because there is not a causal relationship between whether the customer was sent a coupon and whether the customer used the coupon in the store.
E.
No, because both of the variables are categorical.
F.
No, because not all of the customers were sent a coupon.
Explanation / Answer
Answer: F. No, because not all of the customers were sent a coupon.
Reason: There will be no association as the coupon would be used by only those who were sent the coupon, and not by those who were not. Hence, the rate of coupon usage will be zero in the latter category, and something positive in the former.
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