Senior High School

Business Enterprise Simulation

Quarter 3 – Module 3 – Lesson 1:
Determining the Demand and
Market Acceptability

Writer:
SHEILA MARIE ANN M. GALURA
T-II San Isidro HS, Bacolor South
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
ELSA A. LAQUINDANUM – MT- I
SHARINETTE R. CORONEL – Teacher II
 What I Need to Know

This module was designed and written with you in mind. It is here to help
you master the introduction to Business Enterprise Simulation. This module is
crafted to allow you to use it in many different learning situations with the
language used recognizing the diverse vocabulary level of students. The discussion
of the topics is arranged to help you follow and understand the flow of the lessons.
After going through this module, you are expected to:
 Choose appropriate methodology (research, sampling and data processing) in
determining the demand and market acceptability of proposed product;
 Classify data based on the data source it is generated from;
 Identify and list down of ways of generating primary and secondary data for
your business venture.

What I Know

Before we tackle this module, let us first check your current knowledge
based from previous module. This way, the teacher can gauge how he/she can
guide you better through this module. Read and analyze each items carefully before
answering.

1. It provides relevant data to help solve marketing challenges that a business

will most likely face--an integral part of the business planning process.
A. action research C. action research
B. business research D. qualitative research
2. Research data can be gathered from both __________ data source.
A. audit and accounting C. primary and secondary
a. internal and external D. qualitative and quantitative
3. Moana used statistical data from the Philippine Statistics Authority in her
research for her business plan. This is a __________ data source.
A. initial C. secondary
B. primary D. tertiary
4. The following are sources of primary data EXCEPT:
A. experiment C. observation
B. internet D. survey
5. When you conduct a survey or an interview to generate data for your
research, you are generating __________ data.
A. initial C. secondary
B. primary D. tertiary

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3
6. These are sources of data are those that have already been compiled and are
available like those from business directories, demographic data from
government or private agencies, existing market research, and those from
the internet.
A. external data source C. primary data source
B. internal data source D. secondary data source
7. It is the most commonly used sampling technique, and truly random, this
method randomly selects individuals from a list of the population, with every
individual having an equal chance at being selected.
A. simple random sampling C. stratified sampling
B. snowball sampling D. systematic sampling
8. It is a process of inspecting, cleaning, transforming, and modeling data with
the goal of highlighting useful information, suggesting conclusions, and
supporting decision making
A. business analysis C. data analysis
B. competitive analysis D. product analysis
9. Typically for this type of sampling, a population is divided into a mutually
exclusive, sub-groups from which the sample items are selected on the basis
of a given proportion.
A. quota sampling C. stratified sampling
B. simple random sampling D. systematic sampling
10.It is also known as probability sampling since the sample selection is done
randomly so the laws of probability can be applied.
A. non-random sampling C. random sampling
B. purposive sampling D. theoretical sampling
11.When generating _________ data source, the person who needs the data does
the gathering himself or herself.
A. external data source C. primary data source
B. internal data source D. secondary data source
12.This is a company's plan for making a profit.
A. business enterprise C. business opportunity
B. business idea D. business plan
13.The following are considered as non-random sampling methods EXCEPT:
A. convenience sampling C. quota sampling
B. judgement sampling D. simple random sampling
14.After generating data from different sources, the next step would be
__________.
A. analyzing and processing data
B. formulating conclusions and recommendations
C. making a business model
D. sampling
15.It is the step in the data analysis process wherein you compare the output
with your desired result.
A. feedback
B. input
C. interpretation
D. processing

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 Lesson
Market Research, Sampling,
1 and Data Processing

Accurate and thorough information is the groundwork of all successful

business ventures because it provides a wealth of information about prospective
and existing customers, the competition, and the industry in general. It allows
business owners to determine the feasibility of a business before committing
substantial resources to the venture. Hence, it is important to be able to identify
and choose the appropriate methodology, such as research, sampling, and data
processing, to be able to determine the demand and market acceptability of a
proposed product for your business enterprise.

Let us recall and refresh your

What’s In knowledge by answering the puzzle
below. Grab a pen and let’s begin!

Recall what you have learned from the previous module. Find and encircle
the term being described by the clues given.

O B D R W E N K N E C S S N L
P S T R E N G T H S O K M E G
P S A I A F Q Z Z U M D S W E
O B J Q K U U C N T P L I E V
R A S U N G L T H X E K P N O
T T H R E A T S O W T Z M T E
U C H T S D Z U I J I A D R Y
N R K U S F E B D p T M O A F
I N T P E V M S Y G O K X N U
T F C Y S P A T B N R R I T K
I M J P V E H I X E S G T S B
E Z D I D L G T Y U Q C R E W
S C G N Q Z A U P S Y E Q R R
A B H S V O B T J Y D W E O S
L S U P P L I E R W N F R I X

5
Here are your clues:
1. These are internal and positive factors that help you to take advantage of
opportunities in the external environment.
2. These are those characteristics of a business that give disadvantage relative
to others.
3. These refer to favorable external factors that could give an organization a
competitive advantage.
4. These are any external factors that could cause damage to your organization,
venture, or product.
5. He is the proponent of the Five Forces Competitive Analysis framework.
6. He/she is a person who makes a purchase of a product or service.
7. It is a person or organization that provides something needed such as a
product or service
8. These are companies or businesses who are trying to sell similar goods or
services to the same people.
9. It refers to the threat new competitors pose to existing competitors in an
industry.
10.It is a product or service that can be easily replaced with another.

Notes to the Teacher

The teacher must take into considerations the essential skills needed in
the development of this competency including the background knowledge
which may reinforce learning. This module will help the learners link the gap of
learning to achieve mastery of the lesson.

What’s New Before we start this module, let

us flex our business minds and
try to guess the mystery words.

Identify the Mystery Words

As you go through this module, you will meet new business terms and
concepts that will be useful for you. Arrange the jumbled words below to find the
mystery words being described. There are clues provided below to help you identify
the mystery words.

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1. It provides relevant data to help 1. M A _ K _ T R_S_A_CH
solve marketing challenges that a
2. P _ I M _ R _ S_UR__S
business will most likely face.
3. S _ M _ L _ N G
2. It includes observation networking,
interviewing and experimentation. 4. I _ P _ T

3. It is a process used in statistical 5. D _ T _ A_AL_S_S

analysis in which a predetermined
number of observations are taken from
a larger population.

4. It is the first part of the data

processing cycle involves collecting data
as well as entering it and then
preparing it for the next part of the
cycle.

5. It is a process of inspecting,
cleaning, transforming, and modelling
data with the goal of highlighting useful
information, suggesting conclusions,
and supporting decision making.

Are you ready to learn today? In

this module, you will know how to
What is It determine the demand and market
acceptability.

After finding the missing terms above, what ideas do you have about the
lesson that we are about to tackle?
You have encountered research through your journey in senior high school.
You are familiar with the research process as well as the experience of conducting
interviews and surveys with your participants and analyzing the data that you have
gathered.

To determine the demand and market acceptability of the product that you
want to venture in, you have to conduct a market research, which is similar to the
research that you are familiar with. Along with this research, you have to make
sure that you will use the correct methodology and gather accurate research data,
sampling, and analysis. From your analyzed data and information, you can
formulate conclusions and propose recommendations for your business venture.
Then you can form a business model that will be useful for your business.

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Market Research
Having accurate and thorough information is a vital factor for the success of
a business venture because it provides a wealth of useful information about
prospective and existing customers, the competition, and the industry in general. It
allows business owners to determine the feasibility of a business before committing
substantial resources to the venture.

Entrepreneur Asia Pacific (n.d.) states that market research provides

relevant data to help solve marketing challenges that a business will most likely
face--an integral part of the business planning process. In fact, strategies such as
market segmentation (identifying specific groups within a market) and product
differentiation (creating an identity for a product or service that separates it from
those of the competitors) are impossible to develop without market research
(Entrepreneur, n.d.).

Research data may be drawn from both primary data and secondary data:
1. Gathering data from primary sources includes observation networking,
interviewing and experimentation. It means that the person who needs the
data does the gathering himself or herself while gathering data from
secondary sources means that somebody else has gathered the data and you
are a secondary user of said data. Primary data sources include the
following:
o Surveys - In survey research, the researcher selects a sample of
respondents from a population and administers a standardized
questionnaire to them.
o Experiments - This is an experiment where the researchers manipulate
one variable, and control/randomizes the rest of the variables.
o Observational research - Observational research (or field research) is a
type of correlational (i.e., non-experimental) research in which a
researcher observes ongoing behavior.
2. Secondary sources of data are those that have already been compiled and
are available like those from business directories, demographic data from
government or private agencies, existing market research, and those from
the internet. Secondary data include:
o public documents
o books
o journals and magazines
o internet
o internal data bases

Sampling
If you are to generate primary data through surveys, interviews, or
observations, you have to identify your research sample or the people with whom
you are going to conduct surveys, interviews, or observations with. You can rely on
various sampling techniques and methods to try and capture as wide range as
possible the various types of customers a client is hoping to glean feedback from.

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 British Library (n.d.) cited sampling as an effective way of obtaining opinions
from a wide range of people, selected from a specific group, in a bid to find out
more about a whole group in general. As a market research tool for entrepreneurs
and start-ups looking to better understand their target market or research the
potential for new business ideas, sampling can be a real benefit.

It would be extremely expensive and time-consuming to gather data from the

entire population of your target market, so by carefully sampling your demographic
it’s possible to build an accurate picture of your target market using common
trends from the results (British Library, n.d.).

Business Jargons (n.d.) provides some of the sampling techniques that you
can employ are:
1. Random Sampling Methods: The random sampling is also called as a
probability sampling since the sample selection is done randomly so the laws of
probability can be applied.
 Simple Random Sampling — the most commonly used sampling
technique, and truly random, this method randomly selects individuals from
a list of the population, with every individual having an equal chance at
being selected.
 Stratified Sampling — this method is a conflation of Simple Random and
Systematic Sampling and is often used when there are a multitude of unique
subgroups that require full, randomized representation across the sampling
population.
 Systematic Sampling — rather than randomly selecting individuals from a
population, this method is based on a system of selecting participants. For
example, a market researcher may select from a list of the population every
20th person. While this allows for a controlled way to select from a target
population, it may be skewed depending on how the original list is
structured or organized.
 Multistage Sampling – it is the probability sampling technique wherein the
sampling is carried out in several stages such that the sample size gets
reduced at each stage.
2. Non-Random Sampling Methods. In the case of non-random sampling, the
selection is done on the basis other than the probability considerations, such as
judgment, convenience, etc. The non-random sampling is subject to sampling
variability, but however there is no certain pattern of variability in the process.
 Judgement Sampling – it is the non-random sampling technique wherein
the choice of sample items depends exclusively on the investigator’s
knowledge and professional judgment.
 Convenience Sampling – it is the non-probability sampling technique
wherein a proportion of the population is selected on the basis of its
convenient availability.
 Quota Sampling – it is yet another non-probability sampling method
wherein the population is divided into a mutually exclusive, sub-groups from
which the sample items are selected on the basis of a given proportion.

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  Snowball Sampling – it is a non-random sampling technique wherein the
initial informants are approached who through their social network
nominate or refer the participants that meet the eligibility criteria of the
research under study. Thus, this method is also called as the referral
sampling method or chain sampling method.

Data Processing
After generating your needed data from your sample, you can now process
and analyze it. Lumen (n.d.) described analysis of data as a process of inspecting,
cleaning, transforming, and modelling data with the goal of highlighting useful
information, suggesting conclusions, and supporting decision making. Data
analysis has multiple facets and approaches, encompassing diverse techniques
under a variety of names in different business, science, and social science domains
(Lumen, n.d.).

Data Processing Cycle

The data processing cycle is a sequential one that starts with inputs and
often ends with interpretation of results – however, many organizations add two
stages for feedback and storage:
1. Input – The first part of the data processing cycle involves collecting data as
well as entering it and then preparing it for the next part of the cycle.
2. Processing – During the second part of the cycle, data is manipulated
according to instructions and parameters programmed into the processing
application.
3. Output – The form of outputs includes common variations such as results
that are printed or displayed on a computer monitor.
4. Interpretation – Assessing and analyzing results: What does the data
mean?
5. Feedback – Comparing output with desired results: How can data be
processed better?
6. Storage – Archiving the data (either physically or electronically) for future
use.

Steps in Business Data Processing

In a complete data processing operation, you should pay attention to what is
happening in five distinct business data processing steps:
1. Editing – What data do you really need? Extracting and editing relevant
data is the critical first step on your way to useful results.
2. Coding – This step is also known as bucketing or netting and aligns the data
in a systematic arrangement that can be understood by computer systems.
3. Data Entry – Entering the data into software is a step that can be performed
efficiently by data entry professionals.
4. Validation – After a “cleansing” phase, validating the data involves checking
(and preferably double-checking) for desired quality levels.

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 5. Tabulation – Arranging data in a form that facilitates further use and
analysis.

Drawing Conclusions and Formulating Recommendations

Thus, you have to generate your conclusions and recommendations based
on the data you have generated, processed and analyzed. These conclusions and
recommendations are critical in determining success or failure of your business
venture. If an otherwise excellent research is summarized by a weak conclusion or
recommendations, the results will not be taken seriously.

After studying the lesson in this

What’s More module, let us now apply the
competencies that you have gained.
Don’t worry. You got this!

Independent Activity 3.1 Classify your Data

Group the following data and classify them into primary data or secondary
data by writing them down on the box it belongs.

Internet Internal Database

Experiment Survey
Books Observation
Magazines Journals
Interview Public Documents

Independent Activity 3.2: Sample! Sample! Sample!

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 To gather your data, you must first be able to identify the sampling
methodology to employ. Classify the following sampling methods as to whethere
they are under Random Sampling Methods (write A) or if they are Non-random
Sampling Methods (write B).

_________ 1. snowball sampling _________ 5. stratified sampling

_________ 2. simple random sampling _________ 6. convenience sampling
_________ 3. multistage sampling _________ 7. quota sampling
_________ 4. judgement sampling _________ 8. systematic sampling

Independent Activity 3.3: The Data Processing Cycle

The data processing cycle is a sequential one that starts with inputs and often ends
with interpretation of results. Based on what you have learned, enumerate and
arrange the steps in processing data.

Independent Activity 3.4: Steps in Business Data Processing

Identify which among the steps in business data processing is being described by
the following statements:
__________________1 It involves checking (and preferably double-checking) for
. desired quality levels.

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__________________2 This step is also known as bucketing or netting and aligns
. the data in a systematic arrangement that can be
understood by computer systems.
__________________3 Arranging data in a form that facilitates further use and
. analysis.
__________________4 This is a step that can be performed efficiently by data
. entry professionals.
__________________5 It is the critical first step on your way to useful results.
.

Independent Activity 3.5: SWAK or WHACK?

The following are statements related to means to which one can determine
the demand and market acceptability of a business idea. Write SWAK if the
statement is correct and write WHACK if the statement is incorrect.
_________ 1. Having accurate and thorough information allows business owners
to determine the feasibility of a business before committing
substantial resources to the venture.
_________ 2. It would be extremely cheap and timely to gather data from the
entire population of your target market.
_________ 3. Market research provides irrelevant data to increase marketing
challenges that a business will most likely face.
_________ 4. You have to generate your conclusions and recommendations
based on the data you have generated, processed and analyzed.
_________ 5. In a complete data processing operation, you should pay attention
to what is happening in six distinct business data processing
steps.

Independent Activity 3.5: For What It’s Worth

Write a one-paragraph essay that illustrates the importance of determining
the demand and market acceptability through market research. How can this
process affect one’s business?

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 Let us now generalized our
What I Have learnings! We have encountered
different concepts in this module.
Learned
How do we determine if there is a demand for our business idea?
It is important to test the market and determine whether or not there is a
demand for the product or service that we want to offer. Recall what you have
learned and fill in the blanks on the following statements:
1. __________________ provides relevant data to help solve marketing challenges
that a business will most likely face--an integral part of the business
planning process.
2. Research data can be generated from __________________ (i.e., surveys,
experiments, and observational research) and __________________ (i.e., public
documents, books, journals, magazines, and the Internet
3. Some of the sampling techniques that you can use are __________________
and __________________.
4. Random sampling methods include: __________________; __________________;
__________________; and __________________.
5. Non random sampling methods include: __________________; convenience
__________________; and __________________.
6. The data processing cycle is a sequential one that starts with inputs and
often ends with interpretation of results – however, many organizations add
two stages for __________________ and __________________.
7. In a complete data processing operation, you should pay attention to what is
happening in five distinct business data processing steps:
__________________, __________________, __________________,
__________________, and __________________.

Let us now apply the competencies

that we have learned by identifying
What I Can the data sources for our own
business idea.
Do

Analyzing your Business Idea

Identify and list down at least five (5) of ways of generating primary and
secondary data for your business venture. This will help you make sound business
strategies and tactics for your business plan.

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 Let us now check how we fare
Assessment in our Post-Assessment Test.
Let’s begin! Good luck!

After studying and analyzing the mini-lesson of this module, let us now
check how much knowledge you have gained. Read and analyze each items
carefully before answering.

1. It provides relevant data to help solve marketing challenges that a business

will most likely face--an integral part of the business planning process.
A. action research C. action research
B. business research D. qualitative research
2. Research data can be gathered from both __________ data source.
A. audit and accounting C. primary and secondary
b. internal and external D. qualitative and quantitative
3. Moana used statistical data from the Philippine Statistics Authority in her
research for her business plan. This is a __________ data source.
A. initial C. secondary
B. primary D. tertiary
4. The following are sources of primary data EXCEPT:
A. experiment C. observation
B. internet D. survey
5. When you conduct a survey or an interview to generate data for your
research, you are generating __________ data.
A. initial C. secondary
B. primary D. tertiary
6. These are sources of data are those that have already been compiled and are
available like those from business directories, demographic data from
government or private agencies, existing market research, and those from
the internet.
A. external data source C. primary data source
B. internal data source D. secondary data source

15
7. It is the most commonly used sampling technique, and truly random, this
method randomly selects individuals from a list of the population, with every
individual having an equal chance at being selected.
A. simple random sampling C. stratified sampling
B. snowball sampling D. systematic sampling
8. It is a process of inspecting, cleaning, transforming, and modeling data with
the goal of highlighting useful information, suggesting conclusions, and
supporting decision making
A. business analysis C. data analysis
B. competitive analysis D. product analysis
9. Typically for this type of sampling, a population is divided into a mutually
exclusive, sub-groups from which the sample items are selected on the basis
of a given proportion.
A. quota sampling C. stratified sampling
B. simple random sampling D. systematic sampling
10.It is also known as probability sampling since the sample selection is done
randomly so the laws of probability can be applied.
A. non-random sampling C. random sampling
B. purposive sampling D. theoretical sampling
11.When generating _________ data source, the person who needs the data does
the gathering himself or herself.
A. external data source C. primary data source
B. internal data source D. secondary data source
12.This is a company's plan for making a profit.
A. business enterprise C. business opportunity
B. business idea D. business plan
13.The following are considered as non-random sampling methods EXCEPT:
A. convenience sampling C. quota sampling
B. judgement sampling D. simple random sampling
14.After generating data from different sources, the next step would be
__________.
A. analyzing and processing data
B. formulating conclusions and recommendations
C. making a business model
D. sampling
15.It is the step in the data analysis process wherein you compare the output
with your desired result.
A. feedback
B. input
C. interpretation
D. processing

16
 Here is an additional activity to help
Additional you kick-start the plans for your
Activities business.

Let us continue with the crafting of the introduction of our business plan:
INTRODUCTION
1.2 PERSONAL DETAILS OF OWNERS

Name
Owner/Proprietor

He/she was born in ________________ (date of birth) at _______________ (place of birth).

Her parents are ________________ (father’s name) and _________________ (mother’s name).
He/she is currently studying as a Grade 12 student at the ______________________ High School in
________________ (school address) under the Division of Pampanga. In the future, he/she wants to
be a successful ________________ (ambition).

Name of Teacher/
Business Mentor

He/she graduated with a degree of _________________________ (degree) at the

________________________ (university/college attended) in ____________________ (school
address). He/she is currently pursuing graduate studies at ____________________ (course) at the
_______________________ (university/college attended).

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 Answer Key

What I Know Assessment What's More

Independent Activity
1. C 1. C 3.1:
2. C 2. C
3. C 3. C Primary Data:
4. B 4. B o survey
5. B 5. B o interview
6. D 6. D o observation
7. A 7. A o experiment
8. C 8. C
9. A 9. A Secondary Data:
10.C 10.C o public documents
11.C 11.C o books
12.D 12.D o journals
13.D 13.D o magazines
14.A 14.A o internet
15.A 15.A o internal data bases

What's More What's More What's More

Independent Activity Independent Activity Independent Activity
3.2: 3.3: 3.5:
1. B 1. Input 1. SWAK
2. A 2. Processing 2. WHACK
3. A
3. Output 3. WHACK
4. B
4. Interpretation 4. SWAK
5. A
5. Feedback 5. WHACK
6. B
7. B 6. Storage Independent Activity
8. A
3.6:
Independent Activity
3.4: The students will be
1. Validation writing an essay using
their own words and
2. Coding
insights.
3. Tabulation
4. Data Entry
5. Editing

18
References
British Library. (n.d.). Effective sampling techniques for market research. Retrieved
from: https://www.bl.uk/business-and-ip-centre/articles/effective-
sampling-techniques-for-market-research
Business Jargons. (n.d.). Sampling methods. Retrieved from:
https://businessjargons.com/sampling-methods.html
Entrepreneur Asia Pacific. (n.d). Market research. Retrieved from:
https://www.entrepreneur.com/encyclopedia/market-research
Garalde-Orjalo, V. & Pefianco, E. C. (2017). Business Enterprise Simulation:
Business Incubation and ABM Integration (1st edition.). The Phoenix
Publishing House Inc.
InterQ. (n.d.). Sampling in marketing research. Retrieved from: https://interq-
research.com/sampling-in-market-research/
Kopp, C. (2019). What is a business model? Investopedia. Retrieved from:
https://www.investopedia.com/terms/b/businessmodel.asp
Laquindanum, E.A. (2020). Enterprise Business Plan: Korean-POP Collectibles
Shop
Lumen. (n.d.) The Marketing research process. Retrieved from:
https://courses.lumenlearning.com/baycollege-introbusiness/chapter/
reading-the-market-research-process/

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 Development Team of the Module

Writer: SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Illustrator: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
Layout Artist: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS

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