1. List the variables in these two exercises individually, and label them as the dependent or independent variables, explaining why they are so labelled.

a. An investor believes that more information increases the accuracy of his forecasts.

b. A marketing manager believes that selecting physically attractive spokesperson and models to endorse their products increases the persuasiveness of a message.

c. Research in behavioral finance has shown that overconfidence can cause investors to underreact to new information.

d. A marketing manager believes that limiting the availability of a product increase product desirability.

2. Product placement is a form of advertising in which a company’s products and name are intentionally positioned in motion pictures, TV programs, radio broadcasting and the likes. Product placement can take many forms: verbal mentions in dialogue, actual use by a character, or visual displays.

a. Describe the dependent and independent variables for a proposed study from this scenario.

b. Describe hypotheses that your study will test based on the scenario above.