Ch7 Exam Questions Testing and Experimenting With New Ideas - Entrepreneurship 2e Complete Test Bank by Heidi M. Neck. DOCX document preview.
Test Bank
Chapter 7: Testing and Experimenting With New Ideas
Multiple Choice
1. The phase of design thinking associated with experimentation is ______.
a. inspiration
b. ideation
c. implementation
d. nonlinearization
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Knowledge
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
2. Why is experimentation required?
a. to meet the requirements of investors and loan officers
b. to strengthen ideas
c. to help with inspiration
d. to form customer-satisfaction scales
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Knowledge
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
3. Which of the following types of plans is the simplest?
a. sketches of a blueprint
b. pitch deck
c. feasibility study
d. back of a napkin
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Back of a Napkin
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
4. What is a hypothesis?
a. the process of conducting a research study
b. a method used to prove or disprove the validity of an idea
c. an assumption tested through research and experimentation
d. a widespread belief
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Knowledge
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
5. Which of the following is an important benefit of experimentation?
a. It is easily accomplished.
b. Assumptions are validated or proven false.
c. It generates new ideas.
d. It generates new business plans.
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Comprehension
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
6. Experiments need to have a clear purpose, be achievable, and generate ______.
a. positive outcomes
b. product ideas
c. reliable results
d. action
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Knowledge
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
7. Before opening his new bakery, Carlos received numerical ratings for each of his products from family and friends he enlisted as tasters. Now, Carlos is adding up the ratings for each variety. What step in the scientific process of experimentation is Carlos engaged in?
a. asking lots of questions
b. carrying out background research
c. developing hypotheses
d. analyzing the data
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Easy
AACSB Standard: Application of knowledge
8. Rather than just gathering data, an experiment matches an outcome to which of the following?
a. the original hypothesis
b. the data collection method
c. the business problem
d. the business opportunity
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: Hypothesis Testing and the Scientific Method Applied to Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
9. If an experiment outcome indicates that the original hypothesis was incorrect, what should the entrepreneur do?
a. Conduct another experiment.
b. Adapt the original assumption.
c. Move forward until there is another assumption to test.
d. Terminate the product or business concept.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: Hypothesis Testing and the Scientific Method Applied to Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
10. The first step of the scientific process of experimentation, for an entrepreneur, is which of the following?
a. Conduct a thorough Internet search.
b. Develop a hypothesis.
c. Ask a lot of questions.
d. Analyze the data.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Knowledge
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
11. Keiran wants to add a new feature to his website but doesn’t want to invest hours of his time to develop and build it. He simply wants to know if customers will actually click the button. What test should he use?
a. button to nowhere
b. click switch
c. task completion
d. smart button
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Application
Answer Location: Button to Nowhere
Difficulty Level: Medium
AACSB Standard: Application of knowledge
12. Before Carlos opened his new bakery, he baked a variety of sample cupcakes and cookies to sell at local farmers markets and other local events. Which stage of the scientific process of experimentation does this represent?
a. asking lots of questions
b. carrying out background research
c. developing hypotheses
d. testing the hypotheses by running experiments
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Medium
AACSB Standard: Application of knowledge
13. In experimentation, an entrepreneur’s goal should be to do which of the following?
a. Use continual iteration to test and shape ideas.
b. Create perfect experiments for perfect outcomes.
c. Use scientific rigor in testing products.
d. Use the scientific method sparingly so as to save resources.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
14. Anthony is thinking of starting a small hot dog cart that he will take to the beach area in San Diego, California. Before starting, he investigates city ordinances and talks to vendors in the beach area. He also talks to people at the local parks who sell hot dogs to find out what makes their business successful. Anthony is conducting what stage of the scientific process?
a. testing the hypothesis
b. experimentation
c. data analysis
d. background research
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Easy
AACSB Standard: Application of knowledge
15. Anthony is thinking of starting a small hot dog cart that he will take to the beach area in San Diego, California. Before starting, he asks an ice cream vendor if he can offer hot dogs using his stand for a small rental fee. He will only need to use space for one day. Anthony is conducting what stage of the scientific process?
a. testing the hypothesis by running an experiment
b. implementation of the plan
c. developing a hypothesis
d. carrying out background research
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Easy
AACSB Standard: Application of knowledge
16. What question is asked when an entrepreneur draws conclusions from the results of data analysis?
a. What can be put into charts and graphs?
b. Can the results be communicated?
c. Do the results support the hypothesis?
d. How can the observations be summarized?
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: Hypothesis Testing and the Scientific Method Applied to Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
17. How should an entrepreneur approach experimentation?
a. Invest high levels of time and resources and strictly adhere to the scientific method.
b. Use quick, low-cost methods of experimentation informed by scientific thinking.
c. Focus on asking lots of questions and ignore the scientific method.
d. Rely upon historical data rather than collecting experimental data.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
18. What is the version of a new product which allows a team to collect the maximum amount of validated learning about the customer with the least effort?
a. minimum valuable product
b. minimum viable product
c. minimum prototype
d. rapid prototype
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: A Deeper Look at Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
19. What is an easy form of prototyping that provides a high-level view of thoughts and ideas arranged in the form of drawings, sketches, or illustrations?
a. pitching
b. mocking up
c. storyboarding
d. modeling
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
20. What is the term used in the text to describe a rough sketch of a basic business plan on any available paper?
a. a rough draft
b. an outline
c. a back-of-the-napkin plan
d. a blueprint
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Back of a Napkin
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
21. An entrepreneur has a website where customers think they are interfacing with his actual product but it is actually the entrepreneur behind the scenes who is manually providing the service. This is called the ______ test.
a. landing page
b. wizard of Oz
c. button to nowhere
d. storyboard
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: Concierge and Wizard of Oz
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
22. A small-scale study conducted to assess a product’s or service’s feasibility is called a(n) ______.
a. user-driven test
b. buyer approved test
c. pilot experiment
d. end user experiment
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Pilots and Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
23. Tim Brown of IDEO built what type of prototype of a complex insulin injection device?
a. Lego
b. Wizard of Oz
c. User-Driven
d. Pilot
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Lego Prototypes
Difficulty Level: Easy
AACSB Standard: Application of knowledge
24. Which of the following is true of sketches on a page plans?
a. They are highly detailed.
b. They are slightly more complicated than back-of-a-napkin plans.
c. They are never created using software.
d. They are time consuming to create.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Sketches on a Page
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
25. How have large businesses traditionally gauged customer tastes and preferences?
a. by analyzing large amounts of historical data
b. by conducting short market experiments
c. by prototyping new concepts
d. by asking employees
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Knowledge
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
26. Which of the following is the main problem regarding intuition in the role of decision making?
a. People tend to lack sufficient experience.
b. It does not provide the knowledge or evidence to support the feasibility of the idea.
c. Few people have strong intuitions.
d. Intuition is not real and cannot be trusted.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Comprehension
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Application of knowledge
27. ______ tends to discourage entrepreneurial experimentation because it is perceived as risky.
a. Reliance on intuition
b. Lack of skill
c. A lack of time
d. Fear of failure
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Knowledge
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
28. San Francisco-based electric skateboard manufacturer Boosted used what testing technique to illustrate how their users would navigate their new mobile app prototype?
a. wireframes
b. storyboarding
c. landing page
d. wizard of Oz
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Knowledge
Answer Location: Paper Testing
Difficulty Level: Medium
AACSB Standard: Application of knowledge
29. In an exploration of the idea for Rent the Runway, which offers rentals of designer dresses, what part of the basic storyboarding framework highlights the fact that most women cannot afford designer clothes?
a. problem
b. solution
c. idea
d. benefit
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Application of knowledge
30. In an exploration of the idea for Rent the Runway, which offers rentals of designer dresses, what part of the basic storyboarding framework would highlight the fact that the rental model gives many more women the opportunity to wear designer dresses, which they could have never afforded before?
a. problem
b. solution
c. idea
d. benefit
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Application of knowledge
31. In an exploration of the idea for Rent the Runway, which offers rentals of designer dresses, what part of the basic storyboarding framework would highlight the concept of allowing women access to designer dresses for one-tenth of the original cost?
a. the problem
b. the solution
c. the idea
d. the benefit
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
32. Todd Kashdan, professor at George Mason University, created a five-dimensional model of what aspect of entrepreneurship?
a. self-promotion
b. confidence
c. curiosity
d. stress
Learning Objective: 7.6: Explore the interviewing process for customer feedback.
Cognitive Domain: Knowledge
Answer Location: The Case for Curiosity
Difficulty Level: Easy
AACSB Standard: Application of knowledge
33. A prototype is best described as which of the following?
a. a type of customer who represents the “ideal” for a venture
b. an initial version of a product or service designed for use in experimentation
c. a stakeholder who offers something unique to a venture
d. a “what if,” idealized version often described in brainstorming
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: Prototype
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
34. What is necessary for a prototype to be effective?
a. It must be a working model of the product or service.
b. It must communicate what our ideas look like, how they behave, and how they work.
c. It must be the same as the model that will be launched at the start of the business.
d. It must include engineering models or, for a service, an operational plan.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Prototype
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
35. A storyboard is classified as what category of business development tools?
a. role-playing
b. prototypes
c. beta tests
d. pilots
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: A Deeper Look at Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
36. The idea of storyboarding grew out of what industry?
a. steel production
b. animation
c. silent filmmaking
d. automobile manufacturing
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Medium
AACSB Standard: Application of knowledge
37. In storyboarding, who or what is at the center of the story?
a. the company
b. the customer
c. the manufacturer
d. the viewer
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
38. What are the elements in the basic framework for storyboarding?
a. problem, solution, benefit
b. solution, approval, action
c. problem, product, organization
d. need, mindset, product
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
39. Which of the following will have the best chance of provoking a reaction?
a. a speech
b. a lengthy, detailed document
c. a storyboard
d. a short, “top-level” document
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: The Power of Storyboarding
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
40. The Sybo team’s first test of its hypothesis (“By automating the light adjustment process, surgeons and staff would achieve greater efficiency and enhanced focus on the patient during procedures.”) consisted of what?
a. a controlled experiment involving surgeons and surgical nurses using standardized equipment
b. a storyboard that showed the actions involved in the automation process
c. a simple prototype of their automatic light
d. a 12-question survey of surgeons
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method. Cognitive Domain: Comprehension
Answer Location: The Six Steps of Scientific Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
41. Sean has created an automatic cat feeder that will release small amounts of wet food at times set by the owner. He hopes that the unit will solve the problem of having to feed the cat multiple times a day or having to throw out food that has gone dry. He builds seven crude but serviceable units and asks friends with cats to test the product. He then obtains their feedback. What is this process called?
a. a pilot
b. a storyboard
c. a product launch
d. an operational test
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Application
Answer Location: Pilots and Prototypes
Difficulty Level: Medium
AACSB Standard: Application of knowledge
42. Sean is thinking about creating an automatic cat feeder similar to one that he created for dogs. He talks to several cat owners to find out what they dislike about feeding their cats. He also takes a look at current cat feeders and asks the same cat owners what they like and don’t like about the feeders. These actions consist of asking questions and what other step in scientific experimentation?
a. a pilot study
b. hypothesis testing
c. background research
d. prototyping
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
43. Sean is thinking about creating an automatic cat feeder similar to one that he created for dogs. He believes that cats eat several times a day. He also believes that cats can be trained to come to the sound of a slight ding, indicating that a new tray of food has been opened. He has several friends set out small trays of food, sounding a ding to see if cats will associate the sound with curiosity about the food. Sean is in what stage of scientific experimentation?
a. testing the hypothesis
b. forming a hypothesis
c. analyzing data
d. assessing results
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
44. What type of experiment is an entrepreneur using if three different options are offered on the website with “click here for more information”?
a. advertising
b. button to nowhere
c. landing page
d. task completion
Ans. C
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Comprehension
Answer Location: Landing Page
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
45. When a customer is looking for more information about a product online and an “under construction” message pops up, the company might be using what type of experiment?
a. advertising
b. button to nowhere
c. storyboard
d. paper testing
Ans. B
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Comprehension
Answer Location: Landing Page
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
46. In what type of prototype does a company create an actual product to sell to customers in order to collect validated learning about the customer with the least about of effort?
a. rapid
b. mock up
c. minimum viable product
d. high fidelity
Ans. C
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: A Deeper Look at Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
47. A ______ prototype has enough functionality to allow users to interact with the product or service.
a. rapid
b. mock up
c. minimum viable product
d. high-fidelity
Ans. D
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Different Types of Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
48. In ______, you try to book orders for your product before it has been developed. It is often used for crowdfunding.
a. wizard of Oz testing
b. preselling
c. concierge testing
d. prototyping
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Knowledge
Answer Location: Preselling
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
49. What type of testing involves watching someone actually use your product so that you can see what works and what does not?
a. prototyping
b. preselling
c. task completion
d. concierge testing
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Knowledge
Answer Location: Task Completion
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
50. During ______, your customer interfaces with your product but the “technology” is being conducted by a live person behind the scenes.
a. prototyping
b. preselling
c. task completion
d. concierge testing
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Knowledge
Answer Location: Concierge and Wizard of Oz
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
51. Yan has created a three-dimensional model of her new food delivery container. It looks like the finished product, but the handles don’t quite function properly yet. What type of prototype has Yan produced?
a. mock-up
b. minimum viable product
c. rapid
d. high-fidelity
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: Mock-Up Prototype
Difficulty Level: Medium
AACSB Standard: Application of knowledge
52. What is the goal of experiential prototyping?
a. for an entrepreneur to capture a user’s emotional experience
b. for a customer to truly interact with the product, even if it is only a prototype
c. for an entrepreneur to interact with a customer as the “behind the scenes” respondent to queries
d. for a customer to understand the development process from the entrepreneur’s perspective
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: Role-Playing
Difficulty Level: Medium
AACSB Standard: Application of knowledge
53. When storyboarding, using a ______ can provide a “before and after” that shows your business in action.
a. gallery sketch
b. scenario
c. back-of-a-napkin sketch
d. mock up
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Sketches on a Page
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
54. Grocery store entrepreneur Jeffrey Brown has built a thriving business and performs lots of low-cost experiments. All of those experiments began with what?
a. Brown’s dedication to serving the immigrant community
b. Brown’s belief in the value of employing people with past criminal records
c. Brown’s conversations with stakeholders
d. Brown’s crusade against urban food deserts
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Comprehension
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
55. Conducting feedback interviews in conjunction with experimentation helps entrepreneurs get more information pertaining to what basic question?
a. What age range is your ideal customer?
b. Who is your ideal customer?
c. How are people becoming aware of your product or service?
d. Why are people interacting in different ways with your product or service?
Learning Objective: 7.6: Explore the interviewing process for customer feedback.
Cognitive Domain: Knowledge
Answer Location: Interviewing for Customer Feedback
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
56. Which of the following questions would likely elicit the most information in a feedback interview on your new pesticide-free lawn service?
a. Do you currently use a lawn service?
b. What would motivate you to begin using a pesticide-free lawn service?
c. Do your neighbors use lawn services?
d. Do you use pesticides in your home?
Learning Objective: 7.6: Explore the interviewing process for customer feedback.
Cognitive Domain: Knowledge
Answer Location: Interviewing for Customer Feedback
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
True/False
1. Experiments do not have to have a clear purpose; they only need to be observed and have an outcome.
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Knowledge
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
2. If the experiment fails to deliver the results the entrepreneur anticipated, the experiment is a failure.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Comprehension
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
3. A prototype is often created before a pilot test is conducted.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Pilots and Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
4. For a prototype to be effective, it must communicate what our ideas would look like, behave like, and work like.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: A Deeper Look at Prototypes
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
5. Observations are not acceptable data in an experiment.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: Hypothesis Testing and the Scientific Method Applied to Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
6. Experiments do not need to be completed in order to produce results.
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Comprehension
Answer Location: Experiments: What They are and Why We Do Them
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
7. A viable experiment identifies a clear hypothesis.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Comprehension
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
8. One of the disadvantages of storyboarding is that it requires artistic talent.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
9. Preselling is a testing technique to book orders for a product before it is developed.
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Knowledge
Answer Location: Preselling
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
10. The main problem with relying on experience in decision making is that some new ideas challenge what we thought we knew or what we thought we wanted.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Comprehension
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Medium
AACSB Standard: Group and individual behaviors
11. A pilot experiment is a large-scale study to assess the feasibility of a product or service.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: Pilots and Prototypes
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
12. While large companies may rely on direct mail, surveys, advertising, and catalogs to gather data about their customers, these are not always reliable methods for entrepreneurs.
Learning Objective: 7.5: Describe the experimentation template. Cognitive Domain: Knowledge
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
13. An entrepreneur following the scientific process of experimentation should conduct background research before forming a hypothesis.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Domain: Knowledge
Answer Location: The Six Steps of Scientific Experimentation
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
14. Entrepreneurs should avoid experimenting with potential customers.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Comprehension
Answer Location: Low-Cost Customer Engagement
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
15. Experimentation is a requirement for today’s successful entrepreneurs.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Knowledge
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
16. Entrepreneurs have more freedom to experiment than larger organizations, as they have less to lose.
Learning Objective: 7.5: Describe the experimentation template. Cognitive Domain: Comprehension
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Contexts of organizations in a global society
17. Entrepreneurs are more likely to generate new business ideas if they stick to a routine of familiar experiences.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Comprehension
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Medium
AACSB Standard: Group and individual behaviors
18. Test and learn is a complex, sophisticated approach to experimentation that is usually reserved for established companies.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Knowledge
Answer Location: Low-Cost Customer Engagement
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
19. A written description of a product is a better way to generate discussion from potential customers than a storyboard.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Comprehension
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
20. When there is insufficient data available, intuition and experience are reliable foundations on which to make decisions.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Knowledge
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Easy
AACSB Standard: Group and individual behaviors
21. A minimum viable product (MVP) has many advantages, but it is impossible to actually earn money from it.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: A Deeper Look at Prototypes
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
22. You can use PowerPoint to create basic storyboards.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: The Power of Storyboarding
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
23. The best form of MVP is the one you don’t actually have to build.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: A Deeper Look at Prototypes
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
24. If you ask a potential customer to create their ideal version of your product, you are involved in creating a user-drive prototype.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Knowledge
Answer Location: User-Driven Prototypes
Difficulty Level: Easy
AACSB Standard: Systems and processes in organizations
25. The most successful entrepreneurs are the ones who make sure they are the smartest person in any room, and education is key to doing so.
Learning Objective: 7.6: Explore the interviewing process for customer feedback.
Cognitive Domain: Comprehension
Answer Location: How to Stay Curious
Difficulty Level: Easy
AACSB Standard: Group and individual behaviors
Essay
1. Describe how experimentation helps a company move forward in a careful and cost-effective manner.
Learning Objective: 7.1: Define experiments and describe why we do them.
Cognitive Domain: Comprehension
Answer Location: Experiments: What They Are and Why We Do Them
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
2. Imagine that you are an entrepreneur making a new type of whiteboard. The board is exceptionally easy to clean and does not glare when pictures of it are taken. Describe why minimum viable product may or may not be a good choice for this idea.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Analysis
Answer Location: Different Types of Prototypes.
Difficulty Level: Medium
AACSB Standard: Analytical thinking
3. Diego has developed a software program idea that will help students organize their study notes. The program will interface with online readers who highlight components of the book, will allow the student to upload notes taken on a notebook or tablet, and will store relevant audio excerpts. All forms of notes can be tagged for categorization. Design a hypothesis that will determine interest in this product, and discuss how the experiment might be carried out.
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
4. Imagine that you are in a Starbucks restaurant and testing the hypothesis that most people are in the store for less than 10 minutes. How would you test this hypothesis?
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: The Six Steps of Scientific Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
5. Demonstrate how taking apart a residential smoke detector might help you apply experimentation to improve the product.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Application
Answer Location: The Experimentation Template
Difficulty Level: Medium
AACSB Standard: Application of knowledge
6. Describe an experience you had while traveling or engaging in a new activity. Identify what the experience was and what elements you later incorporated into your life.
Learning Objective: 7.5: Describe the experimentation template.
Cognitive Domain: Analysis
Answer Location: The Experimentation Template
Difficulty Level: Medium
AACSB Standard: Reflective thinking
7. Why is experimenting risky?
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Application
Answer Location: Generating Data and the Rules of Experimentation
Difficulty Level: Medium
AACSB Standard: Application of knowledge
8. List the three main questions that are crucial to the problem-solution-benefit framework of storyboarding. Then, choose a well-known business and describe how that business’ founder might have created its storyboard.
Learning Objective: 7.3: Explore prototypes in greater depth.
Cognitive Domain: Application
Answer Location: The Power of Storyboarding
Difficulty Level: Medium
AACSB Standard: Application of knowledge
9. Compare and contrast the button to nowhere and wizard of Oz experiments. Include the goal of each type of experiment.
Learning Objective: 7.2: Identify the different types of experiments most commonly used.
Cognitive Domain: Analysis
Answer Location: Types of Experiments
Difficulty Level: Medium
AACSB Standard: Systems and processes in organizations
10. The text advises that while entrepreneurs should take a “scientific approach” to experimentation, it is not necessary to “act like a scientist.” With that in mind, explain what entrepreneurs do not have to do when following the six steps of scientific experimentation. (Address each step individually.)
Learning Objective: 7.4: Demonstrate how to test hypotheses and explain the scientific method.
Cognitive Domain: Analysis
Answer Location: The Six Steps of Scientific Experimentation in Action
Difficulty Level: Hard
AACSB Standard: Systems and processes in organizations