Running head: WEEK 3 FORUM
Week 3 Forum
Adriana Salazar
Liberty University
BUSI 600 – B11
WEEK 3 FORUM
3.5
a. If sales per capita income are positively related, classify all variables as
dependent, independent, moderating, extraneous, or intervening.
b. Comment on the utility of a model based on the hypothesis
There are many factors that can contribute to the total sale of automobiles from a
manufacturer. The most sales are usually done during special seasons and when offers are
given. It’s important for the buyer to get the best deal out of their purchase so the buyer
will do all it takes to spend their money well. In 2015, 17.5 million cars and trucks were
sold in America (Isidore, 2016). According to CNN, the reason for such high sales was
due to lower gas prices, stronger job growth, easy credit, and recuperation from previous
years of low sales (Isidore, 2016). Taking into consideration the variables presented in the
original question, the following will discuss all variables contributing to the idea that
sales per capita income go hand in hand.
Variables can be classified into five categories: dependent, independent,
moderating, extraneous and intervening (Cooper & Schindler, 2014, pg 55). The
independent variable is manipulated by the researcher (Cooper & Schindler, 2014, pg 55).
In this case, the IV is the per capita income increases. The dependent variable is
measured or predicted (Cooper & Schindler, 2014, pg 55). The DV is demand for the
brand. The moderating variable is seen as a second independent variable due its probable
significance to the IV-DV relationship (Cooper & Schindler, 2014, pg 55). The MV, is the
low interest rates. Extraneous variables exist to possibly affect the relationship observed
(Cooper & Schindler, 2014, pg 55). The EV’s are competitor advertising, competitor
dealer discounts, and introductions of new competitive models. Lastly an intervening
variable, is seen as a factor that affects the dependent variable but cannot be measured
(Cooper & Schindler, 2014, pg 55). The IVV’s are buyer age and gender.
It is noted that the variables are a strong deciding factors on the amount of car
sales a brand manufacturer has. It is also important to take into consideration what a car
buyer is doing on their own time before stepping foot into a dealership. In recent years,
car buyers are doing most of the work at home by researching deals and car options as
oppose to 10 years ago when people only visited dealerships (LeBeau, 2014). For people
that still only visit dealerships, a different type of result can be found due to the pressure
of the sales team on the buyer. Many people, not consider age, income, or gender, may be
influenced into buying a car that they originally did not intend to purchase. This is due to
dealerships finding a way to sell based on a last minute discount or offers.
Models are used to interpret the change that variables have cause a equation. In
this case, the model is: the demand for the brand is due to the per capita income
increases. The higher the per capita income, the higher the demand for the brand of
automobiles. The hypothesis is used to predict the conclusion of the study and to examine
all the variables that took part in all the steps. The hypothesis also serves as a way to
prove or rule out accuracy. Proving a hypothesis to be accurate means all variables were
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WEEK 3 FORUM
labeled accordingly and effectively. Hebrews 10:26 (ESV) "For if we go on sinning
deliberately after receiving the knowledge of the truth, there no longer remains a sacrifice
for sins”. Discovering the truth allows us to find direction to the right path. In times of
confusion and lack of answers, seeking guidance aids the situation. A hypothesis is a path
to find the answers just like truth is a path to peace.
Word Count: 593
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WEEK 3 FORUM
Reference
Cooper, D., & Schindler, P. (2014). Business research methods (12th ed.). Boston, MA:
McGraw-Hill.
Isidore, C. (2016, January 5). U.S. car sales set record. Retrieved September 13, 2016,
from CNN Money website:
http://money.cnn.com/2016/01/05/news/companies/car-sales/
LeBeau, P. (2014, February 26). Americans rethinking how they buy cars. Retrieved
September 13, 2016, from CNBC website:
http://www.cnbc.com/2014/02/26/americans-rethinking-how-they-buy-cars.html
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