Interpreting marketing data

correlation

• helps business understand rs between two factors, if business can understand key factors determining demand for products able to manipulate them to achieve greater sales.

• strong correlation does not necessarily mean that one variable leads to another

sampling

• involves selecting a representative group of ppl from the target population

• the sample size and method of conducting will determine accuracy and reliability

• anything less than 100% pop cant be fully accurate

• + quicker and easier than trying to collect research from everyone

• + bigger the sample size, more representative it’ll be.

confidence level and confidence interval

• confidence level- indication of how accurate research findings are- 80%=80% confidence that results are accurate

• confidence interval- possible range of outcomes for given confidence, as interval narrows the confidence level will fall.

Extrapolation

• means predicting future trends, eg sales trends based on past results

• is reliable when conditions remain the same

• further into the future we extrapolate the less confidence we have of certainty