Roger Wants to Study Whether the Level of Personal Income

question 23

Multiple Choice

Roger wants to study whether the level of personal income predicts happiness.He operationally defines income as "the gross amount of money a person earns in a calendar year." He operationally defines happiness as "the ability of that person to stand on one leg for longer than 3 minutes." What is glaringly wrong with Roger's study?

• A)It lacks validity;income can be measured,but happiness cannot.
• B)It lacks reliability;the operational definitions of the properties under study produce inconsistent measurements.
• C)It lacks validity;the operational definition of happiness is unrelated to the underlying property of happiness.
• D)It lacks reliability;it is difficult to precisely measure both income and happiness.

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Definitions:

Capital Spending

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its operations and revenue.

Operating Cash Flow

The cash generated from the normal operating processes of a business, reflecting the company's ability to generate sufficient cash to meet its operating expenses.

Book Value

The difference between a company's total assets and its total liabilities, as shown in the balance sheet.

Statement of Financial Position

A financial statement detailing a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.