Mikayla works in the planning department of a restaurant chain. The company wants to expand into two more countries in the state where its headquarters is located. Mikayla needs to find out which countries have the highest average income. Which of the following sources would be the best use?
The Correct Answer and Explanation is :
The best source Mikayla should use to find out which countries have the highest average income would be government or official economic statistics (e.g., census data or reports from the national statistics bureau).
Explanation:
1. Accurate Income Data:
Government or official economic statistics are the most reliable source for average income data because they are based on large-scale, verified data collection efforts. These sources are compiled through rigorous surveys, taxation data, or national economic assessments, ensuring high credibility and relevance. For example, if the country is in the U.S., Mikayla could use reports from the U.S. Census Bureau or the Bureau of Economic Analysis (BEA).
2. Comprehensive Coverage:
These sources typically cover data at multiple levels—national, state, and even regional—making them ideal for pinpointing income levels in specific geographic locations. Mikayla can use this data to compare countries within her state accurately.
3. Up-to-Date Information:
Businesses rely on current economic data to make decisions. Official statistics are updated regularly, ensuring that Mikayla bases her expansion plans on the most recent trends. Relying on outdated or incomplete data could lead to flawed conclusions.
4. Strategic Business Decisions:
For the restaurant chain, targeting countries with higher average incomes is crucial because residents of such areas are more likely to have disposable income to dine out frequently. By using official data, Mikayla can ensure her recommendations align with the company’s revenue goals and demographic strategies.
Alternative Sources (Less Ideal):
- Social media trends or crowd-sourced data: May provide insights into dining preferences but lack precision for income data.
- Non-governmental reports: These can be helpful but may be limited in scope or biased toward specific industries.
By using authoritative economic statistics, Mikayla ensures her decision-making is data-driven and aligned with strategic goals.